Terreno Realty Corporation Acquires Property in Rancho Dominguez, CA for $13.8 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) has acquired a 2.3-acre industrial property in Rancho Dominguez, California for approximately $13.8 million as of November 30, 2021. The property is strategically located between Los Angeles International Airport and the Ports of Los Angeles and Long Beach, with a short-term lease in place until March 2022. The estimated stabilized cap rate for this acquisition is 4.9%, calculated based on annualized cash basis net operating income at a stabilized occupancy of 95%.

Positive

• Strategic acquisition of a property in a prime location near major transport hubs.
• Estimated stabilized cap rate of 4.9% indicates potential for solid 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 Rancho Dominguez, California on November 30, 2021 for a purchase price of approximately $13.8 million.

The 2.3-acre improved land parcel at 14725 S. Maple Avenue is between Los Angeles International Airport and the Ports of Los Angeles and Long Beach and adjacent to Terreno Realty Corporation’s improved land parcel at 14732 S. Maple Avenue. The property is leased on a short-term basis through March 2022 and the estimated stabilized cap rate is 4.9%.

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, 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/20211201005161/en/

Jaime Cannon

415-655-4580

Source: Terreno Realty Corporation

FAQ

What was the acquisition price of the property by TRNO?

The acquisition price was approximately $13.8 million.

Where is the newly acquired property located?

The property is located in Rancho Dominguez, California.

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

The estimated stabilized cap rate is 4.9%.

When does the lease for the acquired property expire?

The lease is set to expire in March 2022.

How large is the property acquired by Terreno Realty?

The property is a 2.3-acre improved land parcel.