Terreno Realty Corporation (NYSE:TRNO), a leading acquirer, owner, and operator of industrial real estate in six major U.S. coastal markets, has announced the completion of its redevelopment and stabilization of Terreno 147th Street in Hawthorne, California, effective November 15, 2024. Previously an improved land parcel, the property now features a 31,000-square-foot industrial distribution building situated on 1.3 acres. It offers four dock-high loading positions, one grade-level loading position, and parking for 35 cars, including four electric vehicle charging stations.
The building is 100% leased to an atomic energy company, with the lease set to run from the completion of the building until April 2028. It is expected to achieve LEED certification. The total investment in the project was $15.6 million, and the estimated stabilized cap rate stands at 5.6%.
Stabilized cap rates are calculated by dividing the annualized net operating income (on a cash basis) stabilized to market occupancy (usually around 95%) by the total acquisition cost. The total acquisition cost includes the initial purchase price, the impact of marking assumed debt to market, due diligence and closing costs, near-term capital expenditures, and leasing costs necessary to achieve stabilization.
Terreno Realty Corporation focuses on acquiring, owning, and operating industrial real estate in key U.S. markets: Northern New Jersey/New York City, Los Angeles, Miami, the San Francisco Bay Area, Seattle, and Washington, D.C.
