Terreno Realty Corporation Acquires Property in Miami, FL for $5.8 Million; Plans Redevelopment

Rhea-AI Summary

Terreno Realty Corporation (NYSE: TRNO) has acquired a 5.8-acre industrial property in Miami, Florida, for approximately $5.8 million. Located near major transport hubs, the vacant site will be redeveloped into two LEED-certified industrial distribution buildings totaling around 129,000 square feet. The redevelopment is expected to cost about $20 million and achieve a stabilized cap rate of 5.1%, with anticipated stabilization in Q4 2022. This acquisition reinforces Terreno's strategy in major coastal U.S. markets.

Positive

• Acquisition of a strategically located property in Miami for $5.8 million.
• Planned redevelopment into LEED-certified buildings enhancing sustainability.
• Expected stabilized cap rate of 5.1%, indicating potential profitability.

Negative

• Need for a significant additional investment of approximately $20 million for redevelopment.
• Stabilization is projected for Q4 2022, indicating a delay in revenue generation.

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 Miami, Florida on April 6, 2021 for a purchase price of approximately $5.8 million.

The 5.8-acre improved land parcel at 3000 NW 73^rd Street is approximately three miles from Miami International Airport and six miles from both PortMiami and Downtown Miami. The property is vacant. Terreno Realty Corporation plans to redevelop the property with two LEED-certified industrial distribution buildings totaling approximately 129,000 square feet with 36 dock-high loading positions, 32’ clear height and parking for 104 cars. The total expected investment in the redeveloped property is approximately $20.0 million with a stabilized cap rate of 5.1% and an anticipated stabilization in the fourth quarter of 2022.

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/20210407005220/en/

FAQ

What did Terreno Realty Corporation acquire?

Terreno Realty Corporation acquired a 5.8-acre industrial property in Miami for around $5.8 million.

What is the expected investment for the Miami property redevelopment by TRNO?

The total expected investment for the redevelopment is approximately $20 million.

What is the anticipated stabilization period for the acquired Miami property?

The anticipated stabilization period is projected for the fourth quarter of 2022.

What is the expected cap rate for the Miami property redevelopment?

The expected stabilized cap rate for the redevelopment is 5.1%.