Terreno Realty Corporation Acquires Property in Carlstadt, NJ for $10.6 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) has acquired a vacant industrial property in Carlstadt, New Jersey, on January 19, 2021, for approximately $10.6 million. The property spans 16,000 square feet on 4.3 acres, featuring 33 dock-high loading positions and parking for 38 vehicles. This acquisition contributes to Terreno's portfolio across six key U.S. coastal markets. The estimated stabilized cap rate for the property is 5.2%, calculated on annualized cash basis net operating income stabilized to market occupancy.

Positive

• Acquisition of a strategic vacant property at a favorable cap rate of 5.2%.
• Enhancing portfolio presence in the New Jersey market, a key coastal area.

Negative

• The property is currently vacant, impacting immediate cash flows.
• Dependence on achieving market occupancy to realize estimated stabilized cap rate.

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 Carlstadt, New Jersey on January 19, 2021 for a purchase price of approximately $10.6 million.

The property consists of one industrial transshipment building containing approximately 16,000 square feet on 4.3 acres. The property is at 256 Paterson Plank Road, adjacent to Exit 16W of the New Jersey Turnpike and the Meadowlands Sports Complex, provides 33 dock-high and one grade-level loading positions and parking for 38 cars. The property is vacant and the estimated stabilized cap rate is 5.2%.

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, 2019 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/20210120005145/en/

FAQ

What is the acquisition value of the property purchased by TRNO?

Terreno Realty Corporation acquired the property for approximately $10.6 million.

What is the estimated stabilized cap rate for TRNO's new property?

The estimated stabilized cap rate for the newly acquired property is 5.2%.

Where is the newly acquired industrial property located?

The property is located in Carlstadt, New Jersey.

What are the key features of the property acquired by TRNO?

The property features 16,000 square feet, 33 dock-high loading positions, and parking for 38 cars.

When was the TRNO property acquisition completed?

The acquisition was completed on January 19, 2021.