Terreno Realty Corporation Acquires Property in Seattle, WA for $16.5 Million

Rhea-AI Summary

Terreno Realty Corporation (NYSE:TRNO) has acquired an industrial property in Seattle for approximately $16.5 million. This acquisition, completed on May 12, 2021, includes one industrial distribution building and two flex buildings, totaling 52,000 square feet. The property, situated at 2454 Occidental Avenue South, is 92% leased to five tenants, with leases expiring by June 2023. The estimated stabilized cap rate is 4.6%.

The company operates in six major coastal U.S. markets, enhancing its industrial real estate portfolio.

Positive

• Acquisition expands Terreno's portfolio in a strategic market.
• Property is 92% leased, indicating strong demand and rental income potential.
• Estimated stabilized cap rate of 4.6% suggests favorable returns.

Negative

• Leases for all tenants expire by June 2023, which may affect future revenue.
• Risks associated with forward-looking statements and potential market uncertainties.

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 Seattle, Washington on May 12, 2021 for a purchase price of approximately $16.5 million.

The property consists of one industrial distribution building containing approximately 19,000 square feet and two flex buildings containing an aggregate of approximately 33,000 square feet on 2.9 acres. The property is at 2454 Occidental Avenue South in Seattle’s SoDo District, provides 12 dock-high and two grade-level loading positions and parking for 127 cars. The property is 92% leased to five tenants, all of which expire by June 2023, and the estimated stabilized cap rate is 4.6%.

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/20210517005015/en/

FAQ

What recent acquisition did Terreno Realty Corporation make?

Terreno Realty Corporation acquired an industrial property in Seattle for approximately $16.5 million on May 12, 2021.

What is the size and capacity of the Seattle property acquired by Terreno Realty?

The property consists of one industrial distribution building and two flex buildings, totaling approximately 52,000 square feet.

What percentage of the Seattle property is leased?

The property is currently 92% leased to five tenants.

When do the leases for the tenants in the Seattle property expire?

All leases for the tenants at the Seattle property are set to expire by June 2023.

What is the estimated stabilized cap rate for the new Seattle property?

The estimated stabilized cap rate for the Seattle property is 4.6%.