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 located in South San Francisco, California on April 3, 2013 for a purchase price of approximately $8.4 million.
The property consists of one industrial distribution building containing approximately 85,000 square feet on 3.3 acres. The building will be substantially renovated by removing approximately 17,000 square feet of building and adding 10 dock high loading positions and trailer storage creating a 68,000 square foot rear load distribution facility. The property is at 240 Littlefield Avenue, is vacant and is Terreno Realty Corporation’s fifth building in the South San Francisco submarket, immediately north of San Francisco International Airport and adjacent to Highway 101. The estimated stabilized cap rate of the property is 6.4%.
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.