Terreno Realty Corporation Acquires Property in Los Angeles, CA for $17.0 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) has acquired an industrial property in Los Angeles, California for approximately $17.0 million on November 1, 2022. This property features a 26,000-square-foot transshipment building on 1.8 acres, providing 19 dock-high loading positions and parking for 66 cars. It is fully leased until September 2024 with an estimated stabilized cap rate of 2.5%. Terreno operates industrial real estate across six major coastal U.S. markets, enhancing its portfolio with this strategic acquisition.

Positive

• Acquisition of a 26,000 square foot industrial property for $17.0 million.
• Property fully leased through September 2024, ensuring immediate cash flow.
• Estimated stabilized cap rate of 2.5% reflects strong investment potential.

Negative

• Potential risks related to meeting estimated forecasts for stabilized cap rates.
• Dependence on tenant performance and economic conditions impacting revenue.

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 1, 2022 for a purchase price of approximately $17.0 million.

The property consists of one industrial transshipment building containing approximately 26,000 square feet on 1.8 acres. The property is at 5401 West 104^th Street, west of I-405 and adjacent to Los Angeles International Airport, provides 19 dock-high loading positions and parking for 66 cars. The property is 100% leased to one tenant through September 2024. The estimated stabilized cap rate of the property is 2.5%.

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, 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/20221014005511/en/

Jaime Cannon

415-655-4580

Source: Terreno Realty Corporation

FAQ

What did Terreno Realty Corporation acquire on November 1, 2022?

Terreno Realty Corporation acquired an industrial property in Los Angeles, California, for approximately $17.0 million.

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

The acquired property consists of approximately 26,000 square feet on 1.8 acres.

What is the estimated cap rate for the new acquisition of TRNO?

The estimated stabilized cap rate for the new acquisition is 2.5%.

How long is the property leased for TRNO's new acquisition?

The property is 100% leased to one tenant through September 2024.

In which markets does Terreno Realty operate?

Terreno Realty operates in Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C.