Terreno Realty Corporation
), a real estate investment trust (REIT), recently acquired an
industrial property in Elkridge, Maryland for approximately $6.7
In concurrence with the transaction, Terreno Realty assumed a
$3.6 million mortgage loan scheduled to mature in August 2014 with
a fixed annual interest rate of 5.87%.
DCT INDUSTRIAL (DCT): Free Stock Analysis
TERRENO REALTY (TRNO): Free Stock Analysis
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The acquisition is part of the long-term strategy of the company to
abstain from pursuing ground-up development or land investments,
and instead own functional and flexible buildings in infill
locations that can be modified to accommodate single and multiple
tenants at discounts to replacement cost.
The multi-tenant acquired property spanning 66,000 square feet of
space is presently 90% leased to two tenants. Built in 2003, the
property is strategically located in close proximity to the
interstate highways, and consequently offers unmatched distribution
space to the lessee with easy access to transportation facilities.
The estimated stabilized cap rate of the asset is 7.1%. Total
acquisition cost of the property included the initial purchase
price, the effects of marking assumed debt to market, due diligence
and closing costs, estimated near-term capital expenditures, and
leasing costs necessary to achieve stabilization.
San Francisco-based Terreno Realty owns and operates industrial
real estate properties, primarily in six major coastal markets of
the U.S. These include the high barrier-to-entry markets of Los
Angeles, Northern New Jersey/New York City, San Francisco Bay Area,
Seattle, Miami and Washington D.C./Baltimore.
Each of the locations in which Terreno Realty has a significant
presence is characterized by a well-established transportation
network - seaports, airports, highways and railways - that are
essential for the swift distribution of goods. In addition,
available land in these markets is scarce, resulting in steep
barriers for the development of new and competing properties.
We have a Neutral rating on Terreno Realty, which presently has a
Zacks #3 Rank, translating into a short-term Hold rating. We also
have a Neutral recommendation and a Zacks #3 Rank for
DCT Industrial Trust Inc.
), one of the competitors of Terreno Realty.