Terreno Realty Corporation (NYSE: TRNO) purchased an industrial property in Newark, New Jersey on April 18, 2022, for a purchase price of $17.3 million. The 9.7-acre upgraded land site at 87 Doremus Avenue is close to Terreno Realty Corporation's 85 Doremus Avenue property and Exit 15E of the New Jersey Turnpike. The property is 100% leased to two tenants, one of whom is on a short-term lease, and the stabilized cap rate is expected to be 5.3 percent.
Annualized cash basis net operating income stabilized to market occupancy usually 95 percent divided by total acquisition cost yields estimated stabilized cap rates. The initial purchase price, the consequences of marking assumed debt to market, buyer's due diligence and closing fees, expected near-term capital expenditures, and leasing costs necessary to achieve stabilization are all included in the total acquisition cost.
Furthermore, Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. are among the six major coastal U.S. markets where Terreno Realty Corporation buys, owns, and manages industrial real estate. Previously, Terreno bought an industrial property situated in Redmond, Washington on April 8, 2022, for a purchase price of around $9.8 million. The property consists of two industrial distribution buildings containing around 32,000 square feet on 2.0 acres.
The property is located at 14505-14515 NE 91st Street, between I-405 and SR 520, and is adjacent to Terreno Realty Corporation's property at 9045 Willows Road. It has 13 grade-level loading positions and 58 parking spaces. The property is 100% leased to a single-tenant, with a fixed cap rate of 4.1 percent.