Terreno Realty Corporation Acquires Portfolio in New York City, Northern New Jersey, San Francisco and Los Angeles for Approximately $365 Million
Terreno Realty acquired a portfolio of industrial properties in New York City, Northern New Jersey, San Francisco, and Los Angeles for $364.5 million. The portfolio consists of 28 buildings totaling 1.2 million square feet, with a 91.6% occupancy rate. The in-place cap rate is 4.3%, estimated stabilized cap rate is 5.0%, and adjusting to market rents is 5.8%. Goldman Sachs & Co. served as the financial advisor for the acquisition.
Acquisition of a portfolio of industrial properties in strategic locations like New York City, Northern New Jersey, San Francisco, and Los Angeles.
High occupancy rate of 91.6% with 70 tenants leasing the properties.
Estimated stabilized cap rates of 5.0% and 5.8% after adjusting to market rents indicate potential for increased profitability in the future.
Purchase price of $364.5 million could potentially strain the company's financial resources.
Potential risks associated with market fluctuations impacting the estimated stabilized cap rates and overall profitability.
Insights
Terreno Realty Corporation's recent acquisition involves a strategic positioning within key U.S. coastal markets, indicative of a strong belief in the enduring demand for industrial real estate in these areas. With an in-place cap rate of
Furthermore, the diversification across multiple markets and 70 tenants may provide a hedging benefit against localized economic downturns. Nevertheless, investors should be aware of the risks associated with the ongoing costs of achieving stabilization and the potential variability in market rents which could affect the estimated cap rates.
The acquisition's size of approximately
It's also noteworthy that with Goldman Sachs as a financial advisor, the deal structure and due diligence have likely been executed with a high level of financial scrutiny which may mitigate investment risk. However, investors should remain cognizant of market sensitivity to interest rate changes, which can impact property values and investment returns in the real estate sector.
The portfolio of 28 buildings containing approximately 1.2 million square feet is
Goldman Sachs & Co. LLC acted as financial advisor to Terreno Realty Corporation on the acquisition.
Estimated stabilized cap rates are calculated as annualized cash basis net operating income stabilized to market occupancy (generally
Terreno Realty Corporation acquires, owns and operates industrial real estate in six major coastal
Additional information about Terreno Realty Corporation is available on the company’s web site at www.terreno.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. We caution investors that forward-looking statements are based on management’s beliefs and on assumptions made by, and information currently available to, management. When used, the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “result,” “should,” “will,” “seek,” “target,” “see,” “likely,” “position,” “opportunity,” “outlook,” “potential,” “enthusiastic,” “future” and similar expressions which do not relate solely to historical matters are intended to identify forward-looking statements. These statements are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control, including risks related to our ability to meet our estimated forecasts related to stabilized cap rates, and those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2023 and our other public filings.
Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected. We expressly disclaim any responsibility to update our forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Accordingly, investors should use caution in relying on past forward-looking statements, which are based on results and trends at the time they are made, to anticipate future results or trends.
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Terreno Realty Corporation
Jaime Cannon
415-655-4580
Source: Terreno Realty Corporation
FAQ
What did Terreno Realty acquire?
Terreno Realty acquired a portfolio of industrial properties in New York City, Northern New Jersey, San Francisco, and Los Angeles.
How much did the acquisition cost?
The acquisition cost for Terreno Realty was approximately $364.5 million.
What is the occupancy rate of the acquired properties?
The acquired portfolio of industrial properties has an occupancy rate of 91.6% with 70 tenants leasing the buildings.
Who served as the financial advisor for the acquisition?
Goldman Sachs & Co. acted as the financial advisor to Terreno Realty for the acquisition.
In which major U.S. markets does Terreno Realty operate?
Terreno Realty operates in six major coastal U.S. markets, including Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C.
