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 Gardena, California on December 19, 2013 for a purchase price of approximately $6.0 million.
The property consists of one industrial distribution building containing approximately 40,000 square feet on 4.5 acres adjacent to Interstate 110 in the South Bay submarket of Los Angeles. The property is at 14611 Broadway and is approximately equidistant from the Ports of LA/Long Beach and Los Angeles International Airport. Upon expiration of an existing short term lease in April 2014, Terreno Realty Corporation intends to expand and renovate the building, including adding approximately 4,000 square feet of covered loading with 18 additional dock-high positions. The renovated 44,000 square foot facility will have 23 dock-high positions, cross-dock loading and 2.2 acres of paved yard for trailer storage. The estimated stabilized cap rate of the property is 6.3%.
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 is an acquirer, owner and operator of 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./Baltimore.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”, 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, 2012 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.