Terreno Realty Corporation Acquires Property in Rancho Dominguez, CA for $32.1 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) announced the acquisition of an industrial property in Rancho Dominguez, California, for approximately $32.1 million on August 3, 2022. The 3.0-acre property is fully leased to two tenants on a short-term basis, with an estimated stabilized cap rate of 5.5%. This acquisition strengthens Terreno's portfolio in key U.S. coastal markets, including Los Angeles and Northern New Jersey. The company continues to focus on strategic acquisitions to enhance its operational footprint.

Positive

• Acquired industrial property in Rancho Dominguez for approximately $32.1 million.
• Property fully leased to two tenants, reducing vacancy risk.
• Estimated stabilized cap rate of 5.5%, indicating potential for steady income.

Negative

• Short-term leases could lead to future vacancy risks.
• -

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 August 3, 2022 for a purchase price of approximately $32.1 million.

The 3.0-acre improved land parcel at 19500 South Alameda Street is south of the Gardena Freeway (SR 91) and west of the Long Beach Freeway (I-710). The property is 100% leased to two tenants on a short-term basis and the estimated stabilized cap rate is 5.5%.

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/20220721006117/en/

Jaime Cannon

415-655-4580

Source: Terreno Realty Corporation

FAQ

What industrial property did Terreno Realty Corporation acquire?

Terreno Realty Corporation acquired a 3.0-acre industrial property in Rancho Dominguez, California.

What was the purchase price for the property acquired by TRNO?

The purchase price for the property was approximately $32.1 million.

What is the estimated cap rate for the new property?

The estimated stabilized cap rate for the new property is 5.5%.

When was the property acquisition announced?

The property acquisition was announced on August 3, 2022.

How does this acquisition affect TRNO's portfolio?

This acquisition enhances TRNO's operational footprint in major U.S. coastal markets.