Terreno Realty Corporation Acquires Property in Bladensburg, MD for $11.9 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) announced the acquisition of a 4.4-acre industrial property in Bladensburg, Maryland, for approximately $11.9 million on December 13, 2021. This property, located near Washington, D.C., is fully leased to a single tenant until May 2024, and it has an estimated stabilized capitalization rate of 3.8%. The acquisition aligns with Terreno's strategy of investing in industrial real estate across key U.S. coastal markets.

Positive

• Acquired a fully leased industrial property in Bladensburg for $11.9 million, enhancing portfolio stability.
• The property's location near Washington, D.C. offers potential for growth and attraction of new tenants.

Negative

• Stabilized cap rate of 3.8% may not be competitive in a rising interest rate environment.
• Dependency on a single tenant until May 2024 poses a risk if tenant fails to renew lease.

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 Bladensburg, Maryland on December 13, 2021 for a purchase price of approximately $11.9 million.

The 4.4-acre improved land parcel at 4501 46th Street is less than two miles outside Washington, D.C., between U.S. Route 1 Alternate and Maryland Route 201. The property is 100% leased to one tenant through May 2024 and the estimated stabilized cap rate is 3.8%.

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/20211214005352/en/

Jaime Cannon

415-655-4580

Source: Terreno Realty Corporation

FAQ

What industrial property did Terreno Realty Corporation acquire?

Terreno Realty Corporation acquired a 4.4-acre industrial property in Bladensburg, Maryland.

How much did Terreno Realty pay for the Bladensburg property?

Terreno Realty purchased the Bladensburg property for approximately $11.9 million.

What is the cap rate for the newly acquired property?

The estimated stabilized cap rate for the Bladensburg property is 3.8%.

Until when is the Bladensburg property leased?

The property is fully leased to a single tenant until May 2024.