Terreno Realty Corporation Acquires Property in Los Angeles, CA for $7.7 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) has acquired an industrial property in Los Angeles, California for approximately $7.7 million. This property features two industrial distribution buildings totaling around 17,000 square feet and is fully leased to two tenants with lease expirations in February 2023 and July 2024. The estimated stabilized cap rate for this acquisition stands at 3.4%. Terreno Realty operates in six major coastal U.S. markets, enhancing its industrial real estate portfolio.

Positive

• Acquisition of a fully leased property in Los Angeles for $7.7 million.
• Estimated stabilized cap rate of 3.4%, indicating potential for steady income.
• Expansion into the Los Angeles market, which may enhance portfolio diversification.

Negative

• Leases expiring in February 2023 and July 2024 may lead to vacancy risks.
• Cap rate may be lower than market expectations, reflecting potential lower returns.

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 located in Los Angeles, California on November 18, 2021 for a purchase price of approximately $7.7 million.

The property consists of two industrial distribution buildings containing approximately 17,000 square feet on 0.4 acres. The property is at 768 and 772 Ceres Avenue in Downtown Los Angeles (DTLA), provides two grade-level loading positions and parking for 22 cars. The property is 100% leased to two tenants expiring in February 2023 and July 2024. The estimated stabilized cap rate of the property is 3.4%.

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/20211119005204/en/

Jaime Cannon

415-655-4580

Source: Terreno Realty Corporation

FAQ

What did Terreno Realty Corporation acquire on November 18, 2021?

Terreno Realty Corporation acquired an industrial property in Los Angeles, California, for approximately $7.7 million.

What is the estimated stabilized cap rate of the newly acquired property by TRNO?

The estimated stabilized cap rate of the property is 3.4%.

When do the leases for the property acquired by Terreno Realty expire?

The leases expire in February 2023 and July 2024.

How large is the industrial property acquired by TRNO?

The industrial property consists of approximately 17,000 square feet on 0.4 acres.

What are the implications of the lease expirations for Terreno Realty Corporation?

The lease expirations may pose vacancy risks, impacting future cash flow and occupancy rates.