Terreno Realty Corporation Sells Property in Newark, NJ for $29.8 Million

Rhea-AI Summary

Terreno Realty (NYSE:TRNO) has sold an industrial property in Newark, New Jersey for $29.8 million on December 10, 2024. The property, consisting of a 5.7-acre improved land parcel with 100% occupancy by a single tenant, was originally purchased in June 2017 for $8.8 million. The investment generated an unleveraged internal rate of return of 14.9%. Terreno operates in six major coastal U.S. markets, including New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle, and Washington, D.C.

Positive

• Sale price of $29.8 million represents a significant gain over $8.8 million purchase price
• Strong unleveraged internal rate of return of 14.9%
• Property maintained 100% occupancy with single tenant

Negative

• None.

Insights

Financial Analyst

The sale of this Newark property represents a significant win for Terreno Realty, demonstrating strong value creation with a $21M profit on their initial $8.8M investment. The 14.9% unleveraged IRR over 6.5 years is particularly impressive in the industrial real estate sector. This transaction showcases TRNO's ability to identify undervalued assets in prime coastal markets and execute value-add strategies effectively. The timing of the sale may indicate management's strategic view on market conditions in the Northern New Jersey market, potentially capitalizing on strong industrial property valuations before any market softening. The successful exit at a significant premium to purchase price validates their market-focused investment approach.

Real Estate Market Analyst

This transaction highlights the continued strength in prime industrial real estate markets, particularly in the strategic Newark location near major transportation hubs. The property's value appreciation from $8.8M to $29.8M reflects both market dynamics and likely improvements made during TRNO's ownership. The fact that the property is 100% leased to a single tenant suggests stable income generation and likely contributed to achieving an attractive exit price. This sale price, representing nearly 3.4x the purchase price, demonstrates the robust demand for well-located industrial assets in major coastal markets, where supply remains constrained and logistics demand continues to drive valuations.

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 Newark, New Jersey on December 10, 2024 for a sale price of approximately $29.8 million.

The property consists of a 5.7-acre improved land parcel which is 100% leased to one tenant. The property was purchased by Terreno Realty Corporation on June 29, 2017 for approximately $8.8 million. The unleveraged internal rate of return generated by the investment was 14.9%.

Terreno Realty Corporation acquires, owns and operates industrial real estate in six major coastal U.S. markets: New York City/Northern New Jersey; 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/20241210391290/en/

Terreno Realty Corporation

Jaime Cannon

415-655-4580

Source: Terreno Realty Corporation

FAQ

How much profit did TRNO make on the Newark property sale in December 2024?

TRNO made approximately $21 million profit, selling the property for $29.8 million after purchasing it for $8.8 million in 2017.

What was the IRR for TRNO's Newark property investment?

The unleveraged internal rate of return (IRR) for the Newark property investment was 14.9%.

How long did TRNO hold the Newark property before selling?

TRNO held the property for approximately 7.5 years, from June 29, 2017 to December 10, 2024.

What was the occupancy rate of TRNO's Newark property at time of sale?

The property was 100% leased to one tenant at the time of sale.

What is the size of the Newark property TRNO sold in December 2024?

The property consists of a 5.7-acre improved land parcel.