Terreno Realty Corporation Acquires Property in Alexandria, VA for $60.8 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) has acquired an industrial property in Alexandria, Virginia for approximately $60.8 million. The property includes three buildings totaling around 199,000 square feet on 9.3 acres, featuring 25 dock-high and 15 grade-level loading positions. Fully leased to 13 tenants with leases expiring by 2026, it boasts an estimated stabilized cap rate of 3.0%.

Terreno operates in six major U.S. coastal markets, enhancing its portfolio with this acquisition.

Positive

• Acquisition of property valued at $60.8 million enhances asset portfolio.
• 100% leased to 13 tenants, ensuring steady cash flow.
• Estimated stabilized cap rate of 3.0% indicates strong financial performance.

Negative

• Leases expire by 2026, creating potential turnover risk.
• Stabilized cap rate may not meet investor expectations.

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 an industrial property located in Alexandria, Virginia on December 10, 2021 for a purchase price of approximately $60.8 million.

The property consists of three industrial distribution buildings containing approximately 199,000 square feet on 9.3 acres. The property is at 5150-5236 Eisenhower Avenue, inside the Capital Beltway, provides 25 dock-high and 15 grade-level loading positions and parking for 216 cars. The property is 100% leased to 13 tenants, all of which expire by 2026, and the estimated stabilized cap rate is 3.0%.

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/20211213005086/en/

Jaime Cannon

415-655-4580

Source: Terreno Realty Corporation

FAQ

What was the acquisition price of the TRNO property in Alexandria?

The acquisition price of the TRNO property in Alexandria was approximately $60.8 million.

What is the size and capacity of the newly acquired TRNO property?

The newly acquired TRNO property consists of three buildings totaling around 199,000 square feet on 9.3 acres, with loading positions for 25 dock-high and 15 grade-level entries.

What is the estimated stabilized cap rate for the Alexandria property?

The estimated stabilized cap rate for the Alexandria property is 3.0%.

How many tenants are leasing the TRNO property in Alexandria?

The TRNO property in Alexandria is fully leased to 13 tenants.

When do the leases for the tenants in the Alexandria property expire?

The leases for the tenants in the Alexandria property expire by 2026.