(By Balaseshan) Terreno Realty Corp. (NYSE: TRNO) said it has purchased a property containing about 186,000 square feet within three industrial buildings located in Carson, California for about $12.75 million.
The buildings are at 17110, 17120 and 17180 South Main Street in the South Bay submarket, adjacent to CA Highway 91 and I-110, about midway between Los Angeles International Airport and the Ports of Los Angeles and Long Beach.
The approximately 9.6 acre site is 100% ground leased until June 30, 2015. The ground lease payment provides an actual cap rate of 0.3%. After expiration of the ground lease the estimated stabilized cap rate of the property is 8.4%.
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 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.
TRNO is trading down 0.52% at $15.17 on Friday. The stock has been trading between $13.27 and $16.40 for the past 52 weeks.