Terreno Spends $73M for Hialeah Industrial Property Adjacent to Owned Assets

Terreno Realty Corporation has acquired an industrial property in Hialeah, FL a purchase price of $73.2 million, net of free-rent credits.

The property consists of two recently developed rear-load 32-foot clear industrial distribution buildings of 407,000 square feet on 19.8 acres. The property on West 108th Street is immediately adjacent to the company’s five existing buildings 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 359 cars. It is 100% pre-leased to two tenants.

The estimated stabilized cap rate of the property is 3.8%, calculated as annualized cash basis net operating income stabilized to market occupancy 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.