Terreno Realty Corporation Acquires Property in Irvine, CA for $8.0 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) has acquired an industrial property in Irvine, California for approximately $8.0 million on December 30, 2020. The property spans 11,000 square feet across 2.1 acres and is fully leased to a single tenant. It features 14 dock-high and two grade-level loading positions, along with parking for 151 cars. The estimated stabilized cap rate is 4.0%. Terreno operates in six major coastal U.S. markets including Los Angeles and Miami.

Positive

• Acquisition of property expected to enhance revenue potential with stable tenant occupancy.
• Strategic location adjacent to major highways, improving logistical operations.
• Estimated stabilized cap rate of 4.0% indicates healthy return potential.

Negative

• Risks associated with achieving projected stabilized cap rates.
• Potential economic impacts related to the COVID-19 pandemic could affect tenant stability.

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 Irvine, California on December 30, 2020 for a purchase price of approximately $8.0 million.

The property consists of one industrial transshipment building containing approximately 11,000 square feet on 2.1 acres. The property is at 12 McLaren adjacent to the intersection of Interstates 5 and 405, provides 14 dock-high and two grade-level loading positions and parking for 151 cars. The property is 100% leased to one tenant and the estimated stabilized cap rate is 4.0%.

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, 2019 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/20210104005047/en/

FAQ

What did Terreno Realty Corporation acquire on December 30, 2020?

Terreno Realty Corporation acquired an industrial property in Irvine, California for approximately $8.0 million.

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

The property consists of approximately 11,000 square feet on 2.1 acres.

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

The estimated stabilized cap rate is 4.0%.

How many cars can the Irvine property accommodate?

The property provides parking for 151 cars.

Where does Terreno Realty Corporation operate?

Terreno Realty Corporation operates in six major coastal U.S. markets including Los Angeles, Northern New Jersey/New York City, and Miami.