Terreno Realty Corp. has a portfolio of industrial properties located in New York City, Northern New Jersey, the San Francisco Bay Area and Los Angeles, for $365 million.
The seller was not disclosed.
The portfolio of 28 buildings with approximately 1.2 million square feet is 91.6 percent leased to 70 tenants. The in-place cap rate is 4.3 percent, the estimated stabilized cap rate is 5 percent and the estimated stabilized cap rate adjusting to today’s market rents is 5.8 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.
