Terreno Realty Corporation Acquires Property in Kearny, NJ for $26.3 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) has acquired an industrial property in Kearny, New Jersey for approximately $26.3 million as of September 27, 2021. The 5.4-acre site, situated near Exit 15E of the New Jersey Turnpike, is currently 51% leased out to two tenants, with an estimated stabilized cap rate of 3.1%. This acquisition aligns with Terreno's strategy of enhancing its portfolio in major coastal U.S. markets.

Positive

• Acquisition of a key industrial property in Kearny, NJ, enhances portfolio.
• Current leasing status at 51% suggests potential for increased revenue.
• Expected stabilized cap rate of 3.1% indicates a solid investment return.

Negative

• Property is only 51% leased, indicating reliance on future tenant occupancy.
• Acquisition cost of approximately $26.3 million could strain financial 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 Kearny, New Jersey on September 27, 2021 for a purchase price of approximately $26.3 million.

The 5.4-acre improved land parcel at 97 Third Street is adjacent to Exit 15E of the New Jersey Turnpike. The property is 51% leased to two tenants and the estimated stabilized cap rate is 3.1%.

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/20210928005197/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 Kearny, New Jersey for approximately $26.3 million.

When was the Kearny property acquired by TRNO?

The Kearny property was acquired on September 27, 2021.

What is the leasing status of the Kearny property acquired by TRNO?

The property is currently 51% leased to two tenants.

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

The estimated stabilized cap rate for the Kearny property is 3.1%.

How does the Kearny acquisition impact Terreno Realty's portfolio?

The acquisition enhances Terreno Realty's portfolio in major coastal U.S. markets.