Terreno Realty Corporation Acquires Property in Santa Clara, CA for $54.6 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) has successfully acquired an industrial property in Santa Clara, California for approximately $54.6 million on May 4, 2022. The facility covers around 135,000 square feet on 6.5 acres, featuring 13 dock-high and five grade-level loading positions, as well as parking for 91 cars. Fully leased to four tenants, the leases will expire between 2022 and 2027, with an estimated stabilized cap rate of 2.5%.

The acquisition enhances Terreno's portfolio in key coastal U.S. markets.

Positive

• Acquisition of industrial property in Santa Clara boosts portfolio.
• Property fully leased to four tenants with leases extending to 2027.
• Strategically located near US 101, promoting operational efficiency.

Negative

• Estimated stabilized cap rate of 2.5% implies lower returns.
• Potential risks due to lease expirations between 2022 and 2027.

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 located in Santa Clara, California on May 4, 2022 for a purchase price of approximately $54.6 million.

The property consists of one industrial distribution building containing approximately 135,000 square feet on 6.5 acres. The property is at 3660 Thomas Road, adjacent to US 101, the Bayshore Freeway, provides 13 dock-high and five grade-level loading positions and parking for 91 cars. The property is 100% leased to four tenants, which expire between 2022 and 2027, and the estimated stabilized cap rate is 2.5%.

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/20220426006190/en/

Jaime Cannon

415-655-4580

 

Source: Terreno Realty Corporation

FAQ

What is the significance of the acquisition by TRNO in May 2022?

Terreno Realty Corporation acquired an industrial property in Santa Clara for $54.6 million, strengthening its presence in key U.S. markets.

What are the details of the industrial property acquired by TRNO?

The property spans approximately 135,000 square feet on 6.5 acres with 13 dock-high loading positions and is fully leased.

How does the acquisition impact TRNO's portfolio?

The acquisition enhances TRNO's portfolio with a fully leased asset, potentially increasing rental income.

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

The estimated stabilized cap rate for the property is 2.5%.

When do the leases for TRNO's new property expire?

The leases for the property acquired by TRNO expire between 2022 and 2027.