Terreno Realty Corporation Acquires Property in Kent, WA for $10.0 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) has announced the acquisition of a Kent, Washington industrial property for approximately $10.0 million on April 13, 2021. The property consists of a 40,000 square foot distribution building and a 27,000 square foot flex building across 4.4 acres. Fully leased to three tenants, it features 8 dock-high and 5 grade-level loading positions. The estimated stabilized cap rate is set at 5.5%, highlighting a robust addition to Terreno's portfolio of industrial real estate in key U.S. coastal markets.

Positive

• Strategic acquisition of a 67,000 square foot industrial property enhances portfolio diversification.
• 100% occupancy with three tenants ensures steady cash flow.
• Estimated stabilized cap rate of 5.5% indicates a solid return on investment.

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 located in Kent, Washington on April 13, 2021 for a purchase price of approximately $10.0 million.

The property consists of one industrial distribution building containing approximately 40,000 square feet and one flex building containing approximately 27,000 square feet on 4.4 acres. The property is at 21414 68^th Avenue South in the northern Kent Valley, provides 8 dock-high and five grade-level loading positions and parking for 105 cars. The property is 100% leased to 3 tenants and the estimated stabilized cap rate is 5.5%.

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/20210414005069/en/

FAQ

What industrial property did Terreno Realty acquire?

Terreno Realty acquired a 67,000 square foot industrial property located in Kent, Washington.

What was the purchase price of the Kent property acquired by Terreno Realty?

The purchase price of the Kent property was approximately $10.0 million.

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

The estimated stabilized cap rate for the acquired property is 5.5%.

When did Terreno Realty acquire the Kent industrial property?

Terreno Realty acquired the Kent industrial property on April 13, 2021.

How many tenants occupy the Kent property acquired by Terreno Realty?

The Kent property is 100% leased to three tenants.