Terreno Realty Corporation Acquires Properties in Seattle, WA for $50.0 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) has acquired three industrial properties in Seattle for approximately $50 million on August 11, 2021. The total land area is 11.7 acres, with key sites adjacent to King County International Airport and Interstate 5. The properties include:

• 9801 Martin Luther King Jr Way S: Purchased for $11.9 million, 100% occupied, 3.1 acres, 2.4% cap rate.
• 9845 Martin Luther King Jr Way S: Purchased for $15.8 million, 100% occupied, 3.4 acres, 3.4% cap rate.
• 9600 Martin Luther King Jr Way S: Purchased for $22.4 million, 0% occupied, 5.2 acres, 4.9% cap rate.

Positive

• Acquisition aligns with Terreno Realty's strategy to expand in coastal U.S. markets.
• All properties will contribute to the revenue stream once stabilized.
• The presence of strong tenants and proximity to key infrastructure enhances property value.

Negative

• 9600 Martin Luther King Jr Way S has 0% occupancy, indicating a potential revenue delay.

Terreno Realty Corporation (NYSE:TRNO), an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, acquired three industrial properties in Seattle, Washington on August 11, 2021 for a purchase price of approximately $50.0 million.

The improved land parcels totaling 11.7 acres are on Martin Luther King Jr Way S adjacent to King County International Airport-Boeing Field and Interstate 5. Property details are:

Address		Price		Occupancy		Acres		Stabilized Cap Rate
9801		$11.9 million		100%		3.1		2.4%
9845		$15.8 million		100%		3.4		3.4%
9600		$22.4 million		0%		5.2		4.9%

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, 2020 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/20210812005086/en/

FAQ

What properties did Terreno Realty acquire in Seattle?

Terreno Realty acquired three industrial properties on Martin Luther King Jr Way S in Seattle.

How much did Terreno Realty pay for the Seattle properties?

The total purchase price for the Seattle properties was approximately $50 million.

What is the occupancy status of the acquired properties?

Two of the properties are fully occupied at 100%, while one property has 0% occupancy.

What are the stabilized cap rates for the Seattle properties?

The stabilized cap rates are 2.4%, 3.4%, and 4.9% for the properties, respectively.

When was the acquisition finalized?

The acquisition was finalized on August 11, 2021.