Terreno Realty Corporation Acquires Property in Newark, NJ for $11.9 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) has acquired an industrial property in Newark, New Jersey, for approximately $11.9 million on May 19, 2022. The 2.4-acre land parcel at 127-167 and 147-163 Doremus Avenue is fully leased short-term to a single tenant, with an estimated stabilized cap rate of 6.9%. This acquisition supports Terreno's strategy of expanding its industrial real estate portfolio across six major coastal U.S. markets, aiming to enhance operational efficiency and increase future revenue.

Positive

• Acquisition of industrial property in Newark for $11.9 million.
• Property fully leased to one tenant, providing immediate cash flow.
• Estimated stabilized cap rate of 6.9%, indicating strong potential returns.

Negative

• None.

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 Newark, New Jersey on May 19, 2022 for a purchase price of approximately $11.9 million.

The 2.4-acre improved land parcel at 127-167 and 147-163 Doremus Avenue is adjacent to Exit 15E of the New Jersey Turnpike and Terreno Realty Corporation’s 85 and 87 Doremus Avenue properties. The property is 100% leased on a short-term basis to one tenant and the estimated stabilized cap rate is 6.9%.

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/20220511006173/en/

Jaime Cannon

415-655-4580

Source: Terreno Realty Corporation

FAQ

What industrial property did Terreno Realty Corporation acquire?

Terreno Realty Corporation acquired a property at 127-167 and 147-163 Doremus Avenue in Newark, New Jersey.

How much did Terreno Realty pay for the Newark acquisition?

Terreno Realty acquired the Newark property for approximately $11.9 million.

What is the estimated cap rate for the Newark acquisition?

The estimated stabilized cap rate for the Newark acquisition is 6.9%.

When was the Newark property acquisition completed?

The acquisition of the Newark property was completed on May 19, 2022.

Why is the Newark property significant for Terreno Realty?

The Newark property enhances Terreno's industrial real estate portfolio in a key coastal U.S. market.