Terreno Realty Corporation, an owner and operator of industrial real estate in six major coastal U.S. markets, acquired an industrial property in Fremont, California. The purchase price has been reported at approximately $6.2 million.
The property is at 45897 Hotchkiss Street, between Interstates 880 and 680 and immediately adjacent to Terreno Realty Corporation’s 45861 Hotchkiss Street property, according to company officials.
The property consists of one industrial distribution building containing approximately 29,000 square feet on 1.5 acres. The property provides four dock-high and two grade-level loading positions, parking for 54 cars and is 42% leased to one tenant.
According to company officials the estimated stabilized cap rate of the property is 5.2%.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.