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 Renton, Washington on May 7, 2018 for a purchase price of approximately $6.0 million.
The property consists of one industrial distribution building containing approximately 39,000 square feet on approximately 2.3 acres adjacent to the intersection of Interstate 405 and Highway 167 in the northern Kent Valley. The property is at 2701 East Valley Road, provides four dock-high and three grade-level loading positions, parking for 42 cars and is 100% leased to one tenant (Editor’s note: According to Google Maps, the tanant in building is Sound Building Supply, a flashing, metal roofing and special fabrication distributor). The estimated stabilized cap rate of the property is 5.2%.
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.