BELLEVUE, Wash. — 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 in Hawthorne, California on August 2, 2022 for a purchase price of approximately $6.5 million.
The 1.3-acre improved land parcel at 4857 W 147th Street is adjacent to I-405 approximately four miles south of Los Angeles International Airport. The property is leased on a short-term basis through December 2022 and is expected to be redeveloped with the construction of an approximately 33,000 square foot LEED-certified industrial distribution building. The estimated stabilized cap rate of the redeveloped property is 5.0% and the total expected investment is approximately $15.8 million.
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.