Terreno Realty Acquires Industry Property In Auburn for $7.4 Million

Terreno Realty Corporation

revealed that it acquired an industrial property situated in Auburn for a purchase price of about $7.4 million. According to the company, the property consisted of one industrial distribution building containing about 67,000 square feet on 3.8 acres adjacent to Valley Freeway, State Route 167, in Kent Valley. Terreno Realty said that the property provided 12 dock-high, as well as, seven grade-level loading positions. It was 100% leased to three tenants and the estimated stabilized cap rate of the property was 5.1%. The company indicated that the estimated stabilized cap rates were calculated as annualized cash basis net operating income stabilized to market occupancy (generally 95%) divided by total acquisition cost. It added that the total acquisition cost included "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." Shares of the company traded 0.67% higher on Friday.