SAN FRANCISCO--(BUSINESS WIRE)--
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 Newark, New Jersey for a
purchase price of approximately $6.3 million on May 7, 2018 and made a
senior secured loan of $55.0 million on May 4, 2018.
The property consists of an improved land parcel of approximately 3.5
acres at 85 Doremus Avenue, immediately adjacent to Exit 15E of the New
Jersey Turnpike, which is 100% leased to one tenant. The estimated
stabilized cap rate of the property is 5.1%.
The senior secured loan has a term of two years, an interest rate of
8.0%, and is secured by a portfolio of nine improved land parcels
primarily located in Newark and Kearny, New Jersey. One of the
properties securing the loan may be put to Terreno Realty Corporation as
partial payment of the loan. This property, and two others, may be
called by Terreno Realty Corporation as partial or full payment of the
loan. More information on these properties follows:
Put/Call Option Property:
87 Doremus Avenue, Newark – 9.8 acres
approximately 31% leased to one tenant priced at $20.0 million.
Call Option Properties:
81 North Hackensack Avenue, Kearny – 16.9
acres 100% leased to one tenant priced at $25.0 million; and
48 Third Street and 280-286 Central Avenue, Kearny – 7.9 acres 100%
leased to three tenants priced at approximately $14.1 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.
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, 2017 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180508005345/en/
Terreno Realty Corporation
W. Blake Baird, 415-655-4580
Michael
A. Coke, 415-655-4580
Source: Terreno Realty Corporation