Terreno Realty Corporation Acquires Property in San Leandro, CA for $17.6 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) announced the acquisition of an industrial property in San Leandro, California, for approximately $17.6 million on March 31, 2021. This property includes three industrial distribution buildings totaling about 112,000 square feet on 7.8 acres, with 25 dock-high and 17 grade-level loading positions. It is fully leased to 13 tenants, with leases expiring by June 2023, and has an estimated stabilized cap rate of 5.6%. This acquisition strengthens Terreno's portfolio in major U.S. coastal markets.

Positive

• Acquisition of a fully leased property enhances portfolio stability.
• Estimated stabilized cap rate of 5.6% indicates potential for solid returns.
• Strategic location adjacent to existing portfolio could yield operational synergies.

Negative

• Leases expire by June 2023, posing potential vacancy risk.
• Dependence on market conditions for achieving stabilization may introduce uncertainty.

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 located in San Leandro, California on March 31, 2021 for a purchase price of approximately $17.6 million.

The property consists of three industrial distribution buildings containing approximately 112,000 square feet on 7.8 acres. The property is at 2002-2150 Edison Avenue, west of I-880 and immediately adjacent to Terreno Realty Corporation’s three-building Whitney Street portfolio, provides 25 dock-high and 17 grade-level loading positions and parking for 152 cars. The property is 100% leased to 13 tenants, all of which expire by June 2023. The estimated stabilized cap rate of the property is 5.6%.

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/20210401005077/en/

FAQ

What industrial property did TRNO acquire?

TRNO acquired an industrial property in San Leandro, California, consisting of three buildings totaling about 112,000 square feet.

What was the acquisition price of the property by TRNO?

The acquisition price of the property was approximately $17.6 million.

When does the lease for the property acquired by TRNO expire?

The lease for the property expires by June 2023.

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

The estimated stabilized cap rate for the property is 5.6%.

How does this acquisition affect TRNO's portfolio?

This acquisition enhances TRNO's portfolio stability and operational synergies by expanding its footprint in key coastal markets.