Terreno Realty Corp. has acquired an industrial property in Santa Clara, Calif., for $54.6 million.
The property consists of one industrial distribution building containing approximately 135,000 square feet on 6.5 acres. The property is at 3660 Thomas Road, which is adjacent to U.S. Route 101 (Bayshore Freeway), and provides 13 dock-high and five grade-level loading positions and parking for 91 cars. The property is 100 percent leased to four tenants, which expire between 2022 and 2027, and the estimated stabilized cap rate is 2.5 percent.
Estimated stabilized cap rates are calculated as annualized cash basis net operating income stabilized to market occupancy (generally 95 percent) 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.
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