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Terreno Realty Corporation (NYSE:TRNO) acquired an industrial property in Gardena, California for approximately $8.8 million on October 15, 2021. The 2.0-acre parcel is strategically located between I-110 and I-710, close to Los Angeles International Airport and the Ports of LA and Long Beach. A lease has been executed for the property, commencing October 18, 2021, resulting in an estimated stabilized cap rate of 7.0% by the end of the lease in October 2026.
Positive
Acquisition of an industrial property for $8.8 million enhances portfolio.
Strategically located property with proximity to major transport hubs.
Lease executed with a regional logistics provider improving cash flow.
Estimated stabilized cap rate of 7.0% indicates strong potential returns.
Negative
None.
--Full property lease executed
SAN FRANCISCO--(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 Gardena, California on October 15, 2021 for a purchase price of approximately $8.8 million.
The 2.0-acre improved land parcel at 15001 South San Pedro Street is between I-110 and I-710 and between Los Angeles International Airport and the Ports of LA and Long Beach. The property was acquired vacant. Further, Terreno Realty Corporation has executed a lease for the property commencing October 18, 2021 and ending October 17, 2026 with a regional logistics provider resulting in an estimated stabilized cap rate of 7.0%.
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, 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.
What property did Terreno Realty Corporation acquire on October 15, 2021?
Terreno Realty Corporation acquired an industrial property in Gardena, California for approximately $8.8 million.
What is the estimated stabilized cap rate for the newly acquired property?
The estimated stabilized cap rate for the acquired property is 7.0%.
When does the lease for the Gardena property commence?
The lease for the Gardena property commences on October 18, 2021.
How long is the lease for the Gardena property?
The lease for the Gardena property is set to end on October 17, 2026.
Why is the location of the Gardena property strategic for Terreno Realty Corporation?
The Gardena property is strategically located between major highways and close to Los Angeles International Airport and the Port of Los Angeles, facilitating logistics operations.
