Terreno Realty Corporation Acquires Property in Brooklyn, NY for $4.5 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) has acquired an industrial property located at 190 Morgan Avenue, Brooklyn, New York, for approximately $4.5 million on October 12, 2021. The acquisition includes a distribution building with about 12,000 square feet on a 0.3-acre lot, which is currently vacant. The estimated stabilized cap rate for this property is 4.9%, calculated based on the anticipated net operating income. This acquisition aligns with Terreno's strategy of expanding its industrial real estate portfolio across six major U.S. coastal markets.

Positive

• Acquisition of a strategically located industrial property in Brooklyn, enhancing portfolio.
• Estimated stabilized cap rate of 4.9%, indicating potential revenue generation.

Negative

• The property is currently vacant, posing initial revenue challenges.
• Future performance heavily relies on achieving market occupancy (generally 95%).

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 Brooklyn, New York on October 12, 2021 for a purchase price of approximately $4.5 million.

The property consists of one industrial distribution building containing approximately 12,000 square feet on 0.3 acres. The property is at 190 Morgan Avenue in East Williamsburg, adjacent to Terreno Realty Corporation’s 134-154 Morgan Park, provides one grade-level loading position and parking for 3 cars. The property is vacant and the estimated stabilized cap rate is 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/20211014005038/en/

Jaime Cannon

415-655-4580

Source: Terreno Realty Corporation

FAQ

What property did Terreno Realty Corporation acquire?

Terreno Realty Corporation acquired an industrial property located at 190 Morgan Avenue, Brooklyn, New York.

How much did Terreno Realty Corporation pay for the Brooklyn property?

The acquisition cost was approximately $4.5 million.

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

The estimated stabilized cap rate for the property is 4.9%.

When did Terreno Realty Corporation acquire the Brooklyn property?

The acquisition took place on October 12, 2021.

What challenges does Terreno Realty Corporation face with the new acquisition?

The property is currently vacant, which may pose initial revenue challenges until market occupancy is achieved.