Terreno Realty Corporation Acquires Property in Newark, NJ for $6.3 Million and Makes Senior Secured Loan of $55.0 Million

Terreno Realty Corporation (NYSE:TRNO), an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, acquired an industrial property located in Newark, New Jersey for a purchase price of approximately $6.3 million on May 7, 2018 and made a senior secured loan of $55.0 million on May 4, 2018.

The property consists of an improved land parcel of approximately 3.5 acres at 85 Doremus Avenue, immediately adjacent to Exit 15E of the New Jersey Turnpike, which is 100% leased to one tenant. The estimated stabilized cap rate of the property is 5.1%.

The senior secured loan has a term of two years, an interest rate of 8.0%, and is secured by a portfolio of nine improved land parcels primarily located in Newark and Kearny, New Jersey. One of the properties securing the loan may be put to Terreno Realty Corporation as partial payment of the loan. This property, and two others, may be called by Terreno Realty Corporation as partial or full payment of the loan. More information on these properties follows:

Put/Call Option Property:
87 Doremus Avenue, Newark – 9.8 acres approximately 31% leased to one tenant priced at $20.0 million.

Call Option Properties:
81 North Hackensack Avenue, Kearny – 16.9 acres 100% leased to one tenant priced at $25.0 million; and

48 Third Street and 280-286 Central Avenue, Kearny – 7.9 acres 100% leased to three tenants priced at approximately $14.1 million.

Estimated stabilized cap rates are calculated as annualized cash basis net operating income stabilized to market occupancy (generally 95%) 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.

Terreno Realty Corporation acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C.

Additional information about Terreno Realty Corporation is available on the company’s web site at www.terreno.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. We caution investors that forward-looking statements are based on management’s beliefs and on assumptions made by, and information currently available to, management. When used, the words “anticipate”, “believe”, “estimate”, “expect”, “intend”, “may”, “might”, “plan”, “project”, “result”, “should”, “will”, and similar expressions which do not relate solely to historical matters are intended to identify forward-looking statements. These statements are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control, including risks related to our ability to meet our estimated forecasts related to stabilized cap rates and those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2017 and our other public filings. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected. We expressly disclaim any responsibility to update our forward-looking statements, whether as a result of new information, future events, or otherwise.

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