Terreno Realty Corporation Acquires Property in Hialeah, FL for $73.2 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) has acquired a new industrial property in Hialeah, Florida for approximately $73.2 million, net of free-rent credits. This property features two rear-load industrial distribution buildings totaling 407,000 square feet and is fully leased to two tenants. The estimated stabilized cap rate for this acquisition is 3.8%.

The property is strategically located near key transportation routes, enhancing its operational efficiency.

Positive

• Acquisition of an industrial property in Hialeah for $73.2 million enhances Terreno's portfolio.
• 100% pre-leased to two tenants, providing immediate cash flow.
• Estimated stabilized cap rate of 3.8% indicates strong potential returns.

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 in Hialeah, Florida on February 9, 2022 for a purchase price of approximately $73.2 million, net of free-rent credits.

The property consists of two recently developed rear-load 32-foot clear industrial distribution buildings containing approximately 407,000 square feet on 19.8 acres. The property is at 4281-4341 West 108^th Street, immediately adjacent to Terreno Realty Corporation’s five existing buildings on West 108th Street and adjacent to Florida’s Turnpike and the southern terminus of I-75. The property provides 124 dock-high and four grade-level loading positions and parking for 359 cars and is expected to obtain LEED certification. The property is 100% pre-leased to two tenants with leases expected to commence in May and September 2022. The estimated stabilized cap rate of the property is 3.8%.

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, 2021 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/20220205005022/en/

Jaime Cannon

415-655-4580

Source: Terreno Realty Corporation

FAQ

What is the recent acquisition by Terreno Realty Corporation (TRNO)?

Terreno Realty Corporation acquired an industrial property in Hialeah, Florida for approximately $73.2 million.

When was the acquisition of the Hialeah property completed?

The acquisition was completed on February 9, 2022.

What is the estimated stabilized cap rate for the acquired property?

The estimated stabilized cap rate is 3.8%.

What are the features of the new industrial property acquired by TRNO?

The property includes two recently developed industrial distribution buildings totaling 407,000 square feet.

Is the acquired property fully leased?

Yes, the property is 100% pre-leased to two tenants.