Terreno Realty Corporation Acquires Property in Anaheim, CA for $7.3 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) has successfully acquired an industrial property located in Anaheim, California for approximately $7.3 million as of September 6, 2022. The 1.2-acre site, which was acquired vacant, is strategically positioned near major freeways. A lease has been executed with a Southern California investment group to provide commissary services, expected to yield a stabilized cap rate of 5.0% by December 2027. This acquisition enhances Terreno Realty's industrial portfolio across six key U.S. markets.

Positive

• Acquired an industrial property in Anaheim, California for $7.3 million.
• Executed a lease with a Southern California investment group, initiating cash flow.
• Estimated stabilized cap rate of 5.0%, indicating potential revenue growth.

Negative

• Property was acquired vacant, indicating potential initial financial strain before stabilization.
• Dependent on market dynamics and tenant performance for achieving projected cap rates.

--Full property lease executed

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 in Anaheim, California on September 6, 2022 for a purchase price of approximately $7.3 million.

The 1.2-acre improved land parcel at 3091 East Coronado Street is adjacent to the intersection of CA SR 91 (The Riverside Freeway) and CA SR 57 (The Orange Freeway). The property was acquired vacant. Further, Terreno Realty Corporation has executed a lease for the property commencing immediately and ending December 2027 with a Southern California investment group facilitating commissary services, resulting in an estimated stabilized cap rate of 5.0%.

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, 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/20220825005699/en/

Jaime Cannon

415-655-4580

Source: Terreno Realty Corporation

FAQ

What property did Terreno Realty Corporation acquire recently?

Terreno Realty Corporation acquired an industrial property in Anaheim, California.

What is the purchase price for the Anaheim property acquired by TRNO?

The purchase price for the Anaheim property was approximately $7.3 million.

What is the estimated stabilized cap rate for the newly acquired property?

The estimated stabilized cap rate for the property is 5.0%.

When does the lease for the Anaheim property commence and end?

The lease for the Anaheim property commences immediately and ends in December 2027.

How does this acquisition impact Terreno Realty's portfolio?

This acquisition expands Terreno Realty's industrial real estate portfolio in key U.S. markets.