Terreno Realty Corporation Acquires Property in Hialeah, FL for $48.1 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) announced the acquisition of an industrial property in Hialeah, Florida, for approximately $48.1 million on March 17, 2021. The property features two rear-load industrial buildings totaling 274,000 square feet on a 15.9-acre lot, equipped with 92 dock-high and four grade-level loading positions. It is fully pre-leased to five tenants, with leases commencing between March and July 2021. The estimated stabilized cap rate is 3.7%, demonstrating strong potential for cash flow and occupancy stability.

Positive

• Acquired a fully leased industrial property, enhancing income stability.
• Estimated stabilized cap rate of 3.7% indicates favorable returns.
• Strategically located near major highways, improving logistics.

Negative

• None.

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 March 17, 2021 for a purchase price of approximately $48.1 million, net of free-rent credits.

The property consists of two recently developed rear-load 32-foot clear industrial distribution buildings containing approximately 274,000 square feet on 15.9 acres. The property is at 4021-4071 West 108^th Street, adjacent to Florida’s Turnpike and the southern terminus of I-75, provides 92 dock-high and four grade-level loading positions, parking for 287 cars and is expected to obtain LEED certification. The property is 100% pre-leased to five tenants with leases commencing between March 1 and July 1, 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/20210318005053/en/

FAQ

What industrial property did TRNO acquire in Hialeah?

TRNO acquired an industrial property with two buildings totaling 274,000 square feet.

What was the purchase price for the Hialeah property?

The purchase price for the property was approximately $48.1 million.

When do the leases for the new property commence?

Leases for the new property will commence between March 1 and July 1, 2021.

What is the estimated stabilized cap rate of the Hialeah property?

The estimated stabilized cap rate is 3.7%.

How does the acquisition impact TRNO's portfolio?

The acquisition enhances TRNO's portfolio with a fully leased asset, providing income stability.