(By Balaseshan) Terreno Realty Corp. (NYSE: TRNO) said it has purchased an industrial building containing about 110,000 square feet located in Tukwila, Washington for about $8.0 million.
As part of the acquisition, Terreno Realty assumed a mortgage loan with a total principal amount of about $5.0 million with a fixed annual interest rate of 6.31%. The mortgage loan has a maturity date of July 2016.
The building is at 17600 West Valley Highway in the northern Kent Valley submarket, approximately three miles from Sea-Tac International Airport, adjacent to Interstate Highways 5 and 405 and 100% leased to six tenants. The estimated stabilized cap rate of the property is 6.3%.
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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 focuses on acquiring on acquiring, owning and operating industrial real estate located in six coastal United States markets: Los Angeles Area; Northern New Jersey/New York City; San Francisco Bay Area; Seattle Area; Miami Area; and Washington, D.C./Baltimore.
TRNO is trading up 0.13% at $15.18 on Monday. The stock has been trading between $13.27 and $16.40 for the past 52 weeks.