Terreno Realty Corporation Acquires Property in Hialeah, FL for $39.4 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) has successfully acquired a 221,000 square foot industrial property in Hialeah, Florida, for approximately $39.4 million, net of free-rent credits, as of July 14, 2021. The site, located at 4151 West 108th Street, boasts 65 dock-high and two grade-level loading positions, with parking for 188 cars. Fully pre-leased to three tenants, leases are expected to begin between July 16 and September 30, 2021, with an estimated stabilized cap rate of 3.7%. This acquisition enhances Terreno’s presence in key coastal U.S. markets.

Positive

• Acquisition of a 221,000 square foot industrial property boosts portfolio value.
• Property is 100% pre-leased to three tenants, ensuring immediate revenue.
• Estimated stabilized cap rate of 3.7% indicates solid investment returns.

Negative

• Potential risks related to achieving estimated stabilized cap rate due to market conditions.
• Impact of COVID-19 pandemic on tenant performance and economic conditions.

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 July 14, 2021 for a purchase price of approximately $39.4 million, net of free-rent credits.

The property consists of one recently developed rear-load 32-foot clear industrial distribution building containing approximately 221,000 square feet on 11.4 acres. The property is at 4151 West 108th Street, immediately adjacent to Terreno Realty Corporation’s buildings at 4021-4071 West 108th Street and adjacent to Florida’s Turnpike and the southern terminus of I-75. The property provides 65 dock-high and two grade-level loading positions and parking for 188 cars and is expected to obtain LEED certification. The property is 100% pre-leased to three tenants with leases expected to commence between July 16 and September 30, 2021 and the estimated stabilized cap rate is 3.7%.

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/20210715005239/en/

FAQ

What is the significance of Terreno Realty Corporation's acquisition of the Hialeah property?

The acquisition enhances Terreno's industrial real estate portfolio and ensures immediate cash flow through 100% pre-leased tenants.

When are the leases for the newly acquired Hialeah property expected to commence?

Leases are expected to commence between July 16 and September 30, 2021.

What is the estimated cap rate for the Hialeah acquisition?

The estimated stabilized cap rate for the property is 3.7%.

How does the Hialeah acquisition impact Terreno Realty Corporation's market presence?

This acquisition strengthens Terreno's market position in Florida, a key coastal U.S. market.

What factors could affect the performance of the Hialeah property investment?

Market conditions and the ongoing impact of the COVID-19 pandemic may affect tenant performance and overall investment returns.