Terreno Realty Corporation Acquires Property in Hialeah, FL for $173.6 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) has acquired an industrial property in Hialeah, Florida, for approximately $173.6 million on February 23, 2023. The 121-acre property is entitled for 2.2 million square feet of industrial distribution buildings, with 29.9% currently pre-leased. The total expected investment for the project is around $491.4 million, including ongoing construction of two buildings with an estimated stabilized cap rate of 5.0% and 6.0% for completed buildings. This acquisition increases Terreno's footprint in the Miami market, strategically located near major transportation routes.

Positive

• Acquisition of a strategically located 121-acre industrial property.
• Expected stabilization cap rates of 5.0% and 6.0% for the projects.
• Expansion into a high-demand market with 29.9% pre-leasing.

Negative

• Significant total expected investment of $491.4 million may strain resources.

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 Hialeah, Florida on February 23, 2023 for a purchase price of approximately $173.6 million.

The property consists of a 121-acre project entitled for 2.2 million square feet of industrial distribution buildings in Miami’s Countyline Corporate Park (“Countyline”), immediately adjacent to Terreno Realty Corporation’s seven fully-leased buildings within Countyline. The project, a landfill redevelopment adjacent to Florida’s Turnpike and the southern terminus of I-75, is 29.9% pre-leased with one 191,000 square foot rear-load industrial distribution building and one 506,000 square foot cross-dock industrial distribution building under construction. At expected completion in 2025 the project, located at the intersection of NW 170th Street and NW 107th Avenue, is expected to contain ten LEED-certified industrial distribution buildings totaling approximately 2.2 million square feet providing 660 dock-high and 22 grade-level loading positions and parking for 1,875 cars for a total expected investment of approximately $491.4 million. The estimated stabilized cap rate of the two buildings under construction is 5.0% and of the eight buildings to be constructed is 6.0%.

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, 2022 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/20230220005218/en/

Jaime Cannon

415-655-4580

Source: Terreno Realty Corporation

FAQ

What is the significance of Terreno's acquisition in Hialeah, Florida?

The acquisition enhances Terreno Realty's presence in the Miami market and aims to tap into growing demand for industrial space.

What are the expected financial returns from the Hialeah property?

The project has estimated stabilized cap rates of 5.0% and 6.0%, indicating potential profitability.

How much did Terreno Realty pay for the Hialeah property?

The property was acquired for approximately $173.6 million.

What is the total expected investment for the Hialeah project?

The total expected investment for the project is around $491.4 million.

What are the construction details of the Hialeah industrial buildings?

The project includes two buildings currently under construction, with a total area of 2.2 million square feet.