Terreno Realty Corp. Pays 74.1 Million For Hialeah Industrial Property

Terreno Realty Corporation acquired an industrial property in Hialeah on December 15 for a purchase price of approximately $74.1 million, net of free-rent credits.

The property consists of two recently developed rear-load 32-foot clear industrial distribution buildings containing approximately 402,000 square feet on 19.0 acres. The property is at 4181-4241 West 108^th Street, immediately adjacent to Terreno Realty Corporation’s three existing buildings on West 108th Street and adjacent to Florida’s Turnpike and the southern terminus of I-75.

The property provides 124 dock-high and four grade-level loading positions and parking for 328 cars and is expected to obtain LEED certification. The property is 100% pre-leased to seven tenants with one lease expected to commence in December 2021 and the remainder prior to June 30, 2022. The estimated stabilized cap rate of the property is 3.8%.

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.