Terreno Realty Corporation Acquires Property in Redmond, WA for $19.9 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) announced the acquisition of an industrial property in Redmond, Washington on June 17, 2022 for approximately $19.9 million. This 3.5-acre parcel, located at 8660 Willows Road, is currently 38% leased to a tenant with an estimated stabilized cap rate of 4.3%. The acquisition boosts Terreno's portfolio in core markets and is anticipated to contribute positively to future revenue streams.

Positive

• Acquisition of a strategically located industrial property in Redmond, enhancing portfolio in a key U.S. market.
• Current 38% lease rate provides immediate cash flow, with potential for increased occupancy.
• Estimated stabilized cap rate of 4.3% indicates solid long-term investment potential.

Negative

• The property is only partially leased at 38%, indicating potential risks in achieving full occupancy.
• Acquisition cost of $19.9 million may pose financial strain if market conditions fluctuate.

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 Redmond, Washington on June 17, 2022 for a purchase price of approximately $19.9 million.

The 3.5-acre improved land parcel at 8660 Willows Road is between I-405 and SR 520 and less than one-half mile from Terreno Realty Corporation’s properties at 9045 Willows Road and 14505-14515 NE 91st Street. The property is 38% leased to one tenant and the estimated stabilized cap rate is 4.3%.

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/20220612005066/en/

Jaime Cannon

415-655-4580

Source: Terreno Realty Corporation

FAQ

What is the acquisition price of the Redmond property by TRNO?

Terreno Realty Corporation acquired the Redmond property for approximately $19.9 million.

When did TRNO acquire the industrial property in Redmond, Washington?

Terreno Realty Corporation acquired the property on June 17, 2022.

What is the current lease status of the Redmond property?

The Redmond property is currently 38% leased to one tenant.

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

The estimated stabilized cap rate for the property is 4.3%.

How does this acquisition impact Terreno Realty Corporation's portfolio?

The acquisition expands Terreno's holdings in a key market, enhancing their industrial real estate portfolio.