Real Estate

Terreno Realty Corporation Acquires Buildings in Avenel for $7.4 Million

Terreno Realty Corporation, an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, acquired two industrial properties located in Avenel on November 25, 2014 for a purchase price of approximately $7.4 million.

The properties consists of two front-load industrial distribution buildings containing approximately 40,000 square feet each on a total of 4.4 acres adjacent to Exit 12 of the New Jersey Turnpike and Route 1. The properties are at 6C and 7C Terminal Way, provide nine dock-high loading positions each and are 100% leased to one tenant. The estimated stabilized cap rate of the properties is 5.7 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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