Terreno Realty Corporation Sells Property in Doral, FL, for $20.6 Million

Rhea-AI Summary

Terreno Realty (NYSE:TRNO) has sold an industrial property in Doral, Florida for $20.6 million. The property, which consists of one industrial distribution building spanning 75,000 square feet on 2.8 acres, is fully leased to a single tenant. The company had originally purchased the property in July 2012 for $4.2 million and achieved an unleveraged internal rate of return of 13.4% on the investment.

Positive

• Significant return on investment: Property sold for $20.6M vs. $4.2M purchase price
• Strong unleveraged internal rate of return of 13.4%
• Property was 100% leased at time of sale

Negative

• None.

Insights

Financial Analyst

The sale of this Doral property demonstrates exceptional value creation, with the $20.6 million exit price representing nearly a 5x multiple over the $4.2 million purchase price from 2012. The 13.4% unleveraged IRR is particularly impressive for an industrial real estate investment, significantly outperforming typical market returns. The transaction highlights Terreno's successful strategy in coastal markets where industrial property values have appreciated substantially.

The full occupancy at sale and location in the high-demand Miami market likely contributed to the strong exit valuation. At approximately $275 per square foot, this sale price reflects the premium nature of industrial assets in prime last-mile logistics locations. This successful exit provides capital for reinvestment in other opportunities across TRNO's target markets.

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, sold an industrial property located in Doral, Florida, on November 21, 2024, for a sale price of approximately $20.6 million.

The property consists of one industrial distribution building containing 75,000 square feet on 2.8 acres which is 100% leased to one tenant. The property was purchased by Terreno Realty Corporation on July 23, 2012, for approximately $4.2 million. The unleveraged internal rate of return generated by the investment was 13.4%.

Terreno Realty Corporation acquires, owns and operates industrial real estate in six major coastal U.S. markets: Northern New Jersey/New York City; Los Angeles; Miami; San Francisco Bay Area; Seattle; 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 and those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2023 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/20241111743617/en/

Terreno Realty Corporation

Jaime Cannon

415-655-4580

Source: Terreno Realty Corporation

FAQ

How much did Terreno Realty (TRNO) sell its Doral, Florida property for in November 2024?

Terreno Realty sold its Doral, Florida property for $20.6 million on November 21, 2024.

What was the original purchase price of TRNO's Doral property?

Terreno Realty purchased the Doral property for approximately $4.2 million on July 23, 2012.

What was the unleveraged internal rate of return for TRNO's Doral property investment?

The unleveraged internal rate of return generated by the investment was 13.4%.

What are the specifications of TRNO's sold property in Doral, Florida?

The property consists of one industrial distribution building containing 75,000 square feet on 2.8 acres and was 100% leased to one tenant.