Terreno Realty Corporation Acquires Property in Hawthorne, CA for $7.9 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) has successfully acquired an industrial property in Hawthorne, California for approximately $7.9 million. The facility spans 21,000 square feet on a 1.5-acre lot and is fully leased until May 2024. Located at 13025 Cerise Avenue, the property features 13 dock-high and 2 grade-level loading positions, along with parking for 54 cars. The acquired property has a stabilized cap rate of 2.9%, calculated from anticipated net operating income.

Positive

• Acquisition of a fully leased property enhances portfolio stability.
• Strategic location in a major U.S. market increases growth potential.
• Stabilized cap rate of 2.9% indicates positive outlook for income generation.

Negative

• None.

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 Hawthorne, California on September 30, 2021 for a purchase price of approximately $7.9 million.

The property consists of one industrial distribution building containing approximately 21,000 square feet on 1.5 acres. The property is at 13025 Cerise Avenue, adjacent to Terreno Realty Corporation’s 13020 and 13030 Cerise Avenue buildings, south of I-105 and between I-405 and I-110, provides 13 dock-high and two grade-level loading positions and parking for 54 cars. The property is 100% leased to one tenant until May 2024. The estimated stabilized cap rate of the property is 2.9%.

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/20211001005148/en/

Jaime Cannon

415-655-4580

Source: Terreno Realty Corporation

FAQ

What is the acquisition cost of the property acquired by TRNO?

Terreno Realty Corporation acquired the property for approximately $7.9 million.

Where is the newly acquired industrial property located?

The property is located at 13025 Cerise Avenue, Hawthorne, California.

What is the size of the industrial property acquired by TRNO?

The industrial property consists of approximately 21,000 square feet.

What is the cap rate for the newly acquired property?

The estimated stabilized cap rate for the property is 2.9%.

When does the current lease for the property expire?

The property is fully leased to one tenant until May 2024.