SAN FRANCISCO — 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 Gardena, California on October 15, 2021 for a purchase price of approximately $8.8 million.
The 2.0-acre improved land parcel at 15001 South San Pedro Street is between I-110 and I-710 and between Los Angeles International Airport and the Ports of LA and Long Beach. The property was acquired vacant. Further, Terreno Realty Corporation has executed a lease for the property commencing October 18, 2021 and ending October 17, 2026 with a regional logistics provider resulting in an estimated stabilized cap rate of 7.0%.
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.