Terreno Realty Corporation Announces Quarterly Operating, Investment and Capital Markets Activity
Terreno Realty Corporation (NYSE:TRNO), an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, announced today its operating, investment and capital markets activity for the first quarter of 2021.
As of March 31, 2021, Terreno Realty Corporation owned 228 buildings aggregating approximately 13.7 million square feet and 25 improved land parcels consisting of approximately 92.5 acres. In addition, Terreno Realty Corporation had two properties under redevelopment that upon completion will contain approximately 286,000 square feet:
- The operating portfolio, excluding two properties under redevelopment, was 96.1% leased at March 31, 2021 to 519 tenants as compared to 97.8% at December 31, 2020 and 97.8% at March 31, 2020. The decline in occupancy as compared to the prior quarter was driven primarily by acquired vacancy of 202,000 square feet (approximately 140bps);
- The same-store portfolio of approximately 12.7 million square feet was 97.4% leased at March 31, 2021 as compared to 97.8% at December 31, 2020 and 97.0% at March 31, 2020;
- The improved land portfolio of 25 parcels totaling approximately 92.5 acres was 97.9% leased at March 31, 2021 as compared to 98.6% at December 31, 2020 and 96.7% at March 31, 2020;
- Cash rents on new and renewed leases totaling approximately 0.3 million square feet commencing during the first quarter increased approximately 16.0% with a tenant retention ratio of 82.3%; and
- Executed a 94,000 square foot lease with a biopharmaceutical company in Union City, California that will commence May 1, 2021 and expire July 31, 2031. The space was leased through March 31, 2021 to a logistics provider.
During the first quarter of 2021, Terreno Realty Corporation acquired four industrial properties consisting of seven buildings containing approximately 529,000 square feet for an aggregate purchase price of approximately $110.1 million. The first quarter investment activity was as follows:
- 2002-2150 Edison Avenue: Three industrial distribution buildings totaling approximately 112,000 square feet on 7.8 acres in San Leandro, California, adjacent to Terreno Realty Corporation’s three-building Whitney Street portfolio. The property provides 25 dock-high and 17 grade-level loading positions and parking for 152 cars. The property was acquired 100% leased to 13 tenants, all of which expire by June 2023, for a purchase price of approximately $17.6 million and an estimated stabilized cap rate of 5.6%;
- 4021-4071 West 108th Street: Two recently developed rear-load 32-foot clear industrial distribution buildings containing approximately 274,000 square feet on 15.9 acres in Hialeah, Florida, adjacent to Florida’s Turnpike and the southern terminus of I-75. The property provides 92 dock-high and four grade-level loading positions, parking for 287 cars, and is expected to obtain LEED certification. The property is 100% pre-leased to five tenants with leases that will commence between March and July 2021. The property was acquired for a purchase price of approximately $48.1 million, net of free-rent credits, and an estimated stabilized cap rate of 3.7%;
- 10822-10856 117th Place NE: One industrial distribution building containing approximately 127,000 square feet on 7.2 acres in Kirkland, Washington, adjacent to I-405. The property provides 20 dock-high and seven grade-level loading positions and parking for 252 cars. The property was acquired 100% leased to five tenants, all of which expire by December 2026, for a purchase price of approximately $33.8 million and an estimated stabilized cap rate of 2.9%; and
- 256 Paterson Plank: One 16,000 square foot transshipment building on 4.3 acres in Carlstadt, New Jersey. The property is adjacent to Exit 16W of the New Jersey Turnpike and the Meadowlands Sports Complex, provides 33 dock-high and one grade-level loading positions and parking for 38 cars. The property was acquired vacant for a purchase price of approximately $10.6 million and an estimated stabilized cap rate of 5.2%.
Subsequent to March 31, 2021, Terreno Realty Corporation acquired one 5.8-acre improved land parcel in Miami, Florida for approximately $5.8 million. This improved land parcel will be redeveloped into two LEED-certified industrial distribution buildings totaling 129,000 square feet for a total expected investment of approximately $20.0 million and an estimated stabilized cap rate of 5.1%.