Terreno Realty Corporation (NYSE: TRNO), an acquirer, owner and operator of industrial real estate in six major coastal US markets, acquired an industrial property located in Union City, California on December 29, 2015 for a purchase price of approximately USD 37.3 million.
The property consists of four recently constructed rear-load industrial distribution buildings containing approximately 301,000 square feet on approximately 16.4 acres in the East Bay of San Francisco adjacent to Interstate 880 between California Highways 92 and 84.
The property, which was placed under contract in December 2014 as part of Terreno Realty Corporation´s USD 23.8 million purchase of three adjacent existing buildings containing approximately 170,000 square feet, is at 1550 Pacific Street, provides 80 dock-high and six grade level loading positions and parking for 490 cars. The estimated stabilized cap rate of the property is 5.5 percent.
Terreno Realty Corporation announced that during construction of the four buildings it has executed three leases totaling 193,560 square feet as follows:
A full building lease of 94,046 square feet to a global third-party logistics company that expires March 2021;
A 64,324 square foot lease to an international distributor of natural stone that expires May 2026; and
A 35,190 square foot lease to an automobile glass distributor that expires April 2026.
As a result, the property is approximately 64.4 percent leased to three tenants.
Estimated stabilized cap rates are calculated as annualized cash basis net operating income stabilized to market occupancy (generally 95 percent) 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 US markets: Los Angeles; Northern New Jersey/New York City; San Francisco Bay Area; Seattle; Miami; and Washington, D.C./Baltimore.