Terreno Realty Corporation Acquires Property in Redmond, WA for $3.5 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) announced the acquisition of a 0.8-acre industrial property in Redmond, Washington, for approximately $3.5 million on December 27, 2021. The property is fully leased to a single tenant on a short-term basis, with an estimated stabilized cap rate of 4.9%. This acquisition aligns with Terreno's strategy of operating industrial real estate across key U.S. coastal markets. The calculated cap rate reflects the property's net operating income against total acquisition costs, which encompass various financial factors necessary for stabilization.

Positive

• Acquisition expands Terreno's holdings in a strategic location in Redmond, Washington.
• The property is 100% leased, ensuring immediate cash flow.
• Estimated stabilized cap rate of 4.9% indicates potential long-term profitability.

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 Redmond, Washington on December 27, 2021 for a purchase price of approximately $3.5 million.

The 0.8-acre improved land parcel at 9045 Willows Road is between I-405 and SR 520. The property is 100% leased to one tenant on a short-term basis 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/20211221005577/en/

Jaime Cannon

415-655-4580

Source: Terreno Realty Corporation

FAQ

What industrial property did Terreno Realty Corporation acquire on December 27, 2021?

Terreno Realty Corporation acquired a 0.8-acre industrial property in Redmond, Washington for approximately $3.5 million.

What is the estimated stabilized cap rate for the Redmond property acquired by Terreno Realty?

The estimated stabilized cap rate for the Redmond property is 4.9%.

Is the Redmond property fully leased?

Yes, the Redmond property is 100% leased to one tenant on a short-term basis.

How does the acquisition of the Redmond property impact Terreno Realty's portfolio?

The acquisition expands Terreno's industrial real estate presence in a key coastal market.