Terreno Realty Corporation Acquires Property in Alexandria, VA for $84.3 Million
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Insights
The acquisition of a substantial industrial property by Terreno Realty Corporation for
The 100% tenancy with leases running through 2031 provides a predictable cash flow, which is a vital metric for evaluating REIT performance. The estimated stabilized cap rate of
From an investor's standpoint, the purchase price compared to the annualized net operating income gives a glimpse into the yield the asset might generate. The cap rate will be an important figure to watch in subsequent quarters as it will impact dividend payouts and overall portfolio performance. With the broader economic context in mind, investors should keep an eye on market occupancy rates and industrial demand as these will directly affect the stability and growth of Terreno's rental income.
Terreno Realty's strategy of positioning within six major coastal markets is a testament to their focus on high-barrier entry markets with potential for growth. The acquisition in Alexandria, VA, fits this narrative, as it is a market with significant governmental and technology sector presence. The proximity to major transportation infrastructure could also hedge against potential downturns in local real estate markets by appealing to a wider range of tenants.
The multi-tenant aspect of the property offers diversification within a single asset, mitigating the risk associated with any single tenant’s default. The diversified tenant base can be seen as a buffer against market volatility. However, investors should be aware that the industrial real estate market is subject to supply and demand dynamics and any shifts in the economic environment affecting trade, such as tariffs or changes in consumption patterns, could impact the property's performance.
The property consists of four industrial distribution buildings containing approximately 357,000 square feet on 19.1 acres. The property is at 6584-6674 Fleet Drive approximately two miles from the intersection of I-95/395 and I-495 (Capital Beltway), provides 67 dock-high and 38 grade-level loading positions and parking for 580 cars. The property is
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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Jaime Cannon
415-655-4580
Source: Terreno Realty Corporation
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