BELLEVUE, Wash.– 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 in Santa Ana, California on September 6, 2023 for a purchase price of approximately $14.8 million.
The property at 1720 East Garry Avenue is immediately adjacent to the Costa Mesa Freeway (CA 55) and less than two miles from the intersection of CA 55 and I-405 and the John Wayne Airport in Orange County. The 4.9-acre property contains three multi-tenant office buildings leased on a short-term basis which will be demolished. After redevelopment, expected to be completed in the first quarter of 2025, the property will contain a 92,000 square foot rear-load industrial distribution building with ten dock-high and two grade-level loading positions and parking for 145 cars for a total expected investment of $40.6 million. The redeveloped property is 100% pre-leased to a provider of temperature-controlled life sciences supply chain solutions, expected to achieve LEED certification and the estimated stabilized cap rate is 5.1%.
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.
