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 Kent, Washington on December 14, 2015 for a purchase price of approximately $14.9 million.
The property consists of one cross-dock industrial distribution building containing approximately 158,000 square feet on approximately 8.2 acres in the Kent Valley. The property is at 20280 84th Avenue South, provides 22 dock-high loading positions, parking for 181 cars and is 100% leased to one tenant on a short-term basis. The property will be renovated to add additional paved yard for loading and trailer storage and to update the building façade and office. The estimated stabilized cap rate of the property is 6.0%.
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 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.