Terreno Realty Corporation Acquires Properties in Los Angeles and Inglewood, CA for $27.2 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) has acquired two industrial properties in Inglewood and Los Angeles, California, for approximately $27.2 million on May 25, 2022. The Inglewood property spans 19,000 square feet and is 70% leased, with a stabilized cap rate of 2.4%. The Los Angeles property encompasses 40,000 square feet and is fully leased, demonstrating a 3.2% stabilized cap rate. Both properties are strategically located near Los Angeles International Airport, enhancing their operational value and potential for future growth.

Positive

• Acquisition of properties increases portfolio size and geographic footprint.
• Inglewood property 70% leased with a stabilized cap rate of 2.4%.
• Los Angeles property fully leased with a stabilized cap rate of 3.2%.
• Strategic location near Los Angeles International Airport enhances property value.

Negative

• None.

BELLEVUE, Wash.--(BUSINESS WIRE)-- Terreno Realty Corporation (NYSE:TRNO), an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, acquired two industrial properties in Los Angeles and Inglewood, California on May 25, 2022 for a purchase price of approximately $27.2 million.

The properties consist of:

• One industrial distribution building at 332 Hindry Avenue in Inglewood containing approximately 19,000 square feet on 0.9 acres with 12 dock-high and one grade-level loading positions and parking for 26 cars. The property is 70% leased to one tenant and the estimated stabilized cap rate is 2.4%; and
• One industrial distribution building at 8320-8400 Isis Avenue in Los Angeles containing approximately 40,000 square feet on 2.1 acres with ten dock-high and six grade-level loading positions and parking for 59 cars. The property is 100% leased to four tenants and the estimated stabilized cap rate is 3.2%.

The properties are west of I-405 adjacent to Los Angeles International Airport.

Estimated stabilized cap rates are calculated as annualized cash basis net operating income stabilized to market occupancy (generally 95%) divided by total acquisition cost. Total acquisition cost includes the initial purchase price, the effects of marking assumed debt to market, buyer’s due diligence and closing costs, estimated near-term capital expenditures and leasing costs necessary to achieve stabilization.

Terreno Realty Corporation acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C.

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, the impact of the COVID-19 pandemic on our business, our tenants and the national and local economies, and those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2021 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220525005861/en/

Jaime Cannon

415-655-4580

Source: Terreno Realty Corporation

FAQ

What properties did Terreno Realty acquire on May 25, 2022?

Terreno Realty acquired two industrial properties located in Inglewood and Los Angeles, California.

What was the purchase price for the properties acquired by Terreno Realty?

The properties were acquired for approximately $27.2 million.

What is the stabilized cap rate for the Inglewood property?

The stabilized cap rate for the Inglewood property is estimated at 2.4%.

How much square footage is the Los Angeles property?

The Los Angeles property contains approximately 40,000 square feet.

What tenants occupy the acquired properties?

The Inglewood property is 70% leased to one tenant, while the Los Angeles property is fully leased to four tenants.