Terreno Realty Corporation

(
TRNO

), a real estate investment trust (REIT), has recently acquired an
industrial building spanning 85,000 square feet in Laurel,
Maryland, for approximately $7.0 million. The property was
purchased from an unnamed seller.

The acquisition is part of the long-term strategy of the company to
abstain from pursuing ground-up development or land investments,
and instead own functional and flexible buildings in infill
locations that can be modified to accommodate single and multiple
tenants at discounts to replacement cost.

The acquired property is presently 100% leased to a single tenant.
The industrial building is strategically located in the
Baltimore/Washington corridor park, in close proximity to
Interstate 95 – the key highway on the East Coast of the U.S.
Consequently, the properties bring on board unmatched distribution
space for the company.

The estimated stabilized cap rate of the asset is 7.6%. Total
acquisition cost of the property included the initial purchase
price, the effects of marking assumed debt to market, due diligence
and closing costs, estimated near-term capital expenditures, and
leasing costs necessary to achieve stabilization.

San Francisco-based Terreno Realty owns and operates industrial
real estate properties primarily in six major coastal markets of
the U.S. These include the high barrier-to-entry markets of Los
Angeles, Northern New Jersey/New York City, San Francisco Bay Area,
Seattle, Miami and Washington D.C./Baltimore.

As of September 30, 2012, Terreno Realty owned 63 buildings
aggregating 4.8 million square feet in high barrier-to-entry
markets of Los Angeles, Northern New Jersey/New York City, San
Francisco Bay Area, Seattle, Miami and Washington D.C./Baltimore.
The properties were approximately 92.6% leased to 97 tenants.

Each of the locations in which Terreno Realty has a significant
presence is characterized by a well-established transportation
network – seaports, airports, highways and railways that are
essential for the swift distribution of goods. In addition,
available land in these markets is scarce, resulting in steep
barriers for the development of new and competing properties.

We have a Neutral rating on Terreno Realty, which presently has a
Zacks #3 Rank translating into a short-term Hold rating. We also
have a Neutral recommendation and a Zacks #4 Rank (short-term Sell
rating) for
DCT Industrial Trust Inc.

(
DCT

), one of the competitors of Terreno Realty.

 

DCT INDUSTRIAL (DCT): Free Stock Analysis
Report

 

TERRENO REALTY (TRNO): Free Stock Analysis
Report

 

To read this article on Zacks.com click here.

 

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Research

Article source: http://community.nasdaq.com/News/2012-10/terreno-realty-acquires-md-property-analyst-blog.aspx?storyid=181923

SAN FRANCISCO–(BUSINESS WIRE)– Terreno Realty Corporation (NYS: TRNO) , an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, acquired two industrial buildings containing approximately 138,000 square feet located in Miami, Florida on September 25, 2012 for a purchase price of approximately $12.1 million. As part of the acquisition Terreno Realty Corporation assumed a mortgage loan with a total principal amount of approximately $6.2 million with a fixed annual interest rate of 5.84%. The mortgage loan has a maturity date of March 2014.

The buildings are at 7500-7600 NW 26^th Street in Miami’s Airport West submarket, approximately one mile from the west cargo area of Miami International Airport and 100% leased to one tenant. The estimated stabilized cap rate of the property is 7.4%.

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 is an acquirer, owner and operator of industrial real estate located 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./Baltimore.

Additional information about Terreno Realty Corporation is available on the company’s web site at www.terreno.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. We caution investors that forward-looking statements are based on management’s beliefs and on assumptions made by, and information currently available to, management. When used, the words “anticipate”, “believe”, “estimate”, “expect”, “intend”, “may”, “might”, “plan”, “project”, “result”, “should”, “will”, and similar expressions which do not relate solely to historical matters are intended to identify forward-looking statements. These statements are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control, including risks related to our ability to meet our estimated forecasts related to stabilized cap rates and those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2011 and our other public filings. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected. We expressly disclaim any responsibility to update our forward-looking statements, whether as a result of new information, future events, or otherwise.

Terreno Realty Corporation
W. Blake Baird
Michael A. Coke
415-655-4580

KEYWORDS:   United States  North America  California  Florida

INDUSTRY KEYWORDS:

Article source: http://www.dailyfinance.com/2012/09/25/terreno-realty-corporation-acquires-buildings-in-m/

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Notable mergers and acquisitions in the Bay Area last week.

{+1} ACQ = acquisitions; DIV = divestitures

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Copyright 2012 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Published 9:40 p.m., Sunday, August 26, 2012

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Article source: http://www.sfgate.com/business/article/Bay-Area-mergers-and-acquisitions-Aug-27-3816953.php

The Board of Directors declared a dividend of $0.3875 per preferred
share on Terreno Realty Corporation’s 7.75% Series A Cumulative
Redeemable preferred stock. The preferred dividend will be payable
October 1, 2012 to preferred stockholders of record at the close of
business on September 10, 2012.

Terreno Realty Corporation is an acquirer, owner and operator of
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./Baltimore.

Additional information about Terreno Realty Corporation is available on
the company’s web site at www.terreno.com.

Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of the federal securities laws. We caution investors that
forward-looking statements are based on management’s beliefs and on
assumptions made by, and information currently available to, management.
When used, the words “anticipate”, “believe”, “estimate”, “expect”,
“intend”, “may”, “might”, “plan”, “project”, “result”, “should”, “will”,
and similar expressions which do not relate solely to historical matters
are intended to identify forward-looking statements. These statements
are subject to risks, uncertainties, and assumptions and are not
guarantees of future performance, which may be affected by known and
unknown risks, trends, uncertainties, and factors that are beyond our
control, including risks related to our ability to meet our estimated
forecasts related to stabilized cap rates and those risk factors
contained in our Annual Report on Form 10-K for the year ended December
31, 2011 and our other public filings. Should one or more of these risks
or uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those anticipated,
estimated, or projected. We expressly disclaim any responsibility to
update our forward-looking statements, whether as a result of new
information, future events, or otherwise.

Article source: http://www.businesswire.com/news/home/20120803005645/en/Terreno-Realty-Corporation-Declares-Quarterly-Dividends

The property consists of one industrial building containing
approximately 75,000 square feet. The property is currently vacant and
is at 1401 NW 78^th Avenue in Doral, adjacent to the Palmetto
Expressway and the west cargo area of Miami International Airport. The
estimated stabilized cap rate of the property is 7.2%.

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 is an acquirer, owner and operator of
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./Baltimore.

Additional information about Terreno Realty Corporation is available on
the company’s web site at www.terreno.com.

Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of the federal securities laws. We caution investors that
forward-looking statements are based on management’s beliefs and on
assumptions made by, and information currently available to, management.
When used, the words “anticipate”, “believe”, “estimate”, “expect”,
“intend”, “may”, “might”, “plan”, “project”, “result”, “should”, “will”,
and similar expressions which do not relate solely to historical matters
are intended to identify forward-looking statements. These statements
are subject to risks, uncertainties, and assumptions and are not
guarantees of future performance, which may be affected by known and
unknown risks, trends, uncertainties, and factors that are beyond our
control, including risks related to our ability to meet our estimated
forecasts related to stabilized cap rates and those risk factors
contained in our Annual Report on Form 10-K for the year ended December
31, 2011 and our other public filings. Should one or more of these risks
or uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those anticipated,
estimated, or projected. We expressly disclaim any responsibility to
update our forward-looking statements, whether as a result of new
information, future events, or otherwise.

Article source: http://eon.businesswire.com/news/eon/20120724005431/en

Austin Allison grinned.

“This looks great; it’s a hip, high-tech vibe,” he said, snapping photos with his iPhone. “It’s open, collaborative space.”

Allison, 26, was seeking a San Francisco base for DotLoop, the technology company he founded in his hometown of Cincinnati three years ago.

He and his wife, Angela Allison, 28, who runs a decorative painting company, plan to relocate to the city this month with their Yorkshire terrier, Paris.

The couple’s move and their quest for living and work space epitomize a modern-day migration being played out continually in the city. San Francisco’s pull as a high-tech hub and cachet as a place to live is drawing growing numbers of entrepreneurs and technology workers who move here from as nearby as Mountain View or as far away as India.

“The Bay Area has one of the most educated and creative workforces anywhere on the planet,” said Gabriel Metcalf, president of the San Francisco Planning and Urban Research Association. “For companies trying to be innovative, the Bay Area is one of the best locations there is. This sets up a ‘virtuous cycle’: The more companies that locate here, the more talent wants to be here, which then improves the attractiveness to more companies.”

Since early 2010, San Francisco’s number of tech sector workers has grown by 13,000, hitting 44,000, according to an analysis of state Employment Development Department data, said Colin Yasukochi, director of research and analysis at CNRE, a commercial real estate firm.

Growing tech hub

In the same time frame, 150 tech firms have set up shop in the city, bringing the total number of such enterprises to 1,850.

Meanwhile, 18 firms from outside the city are seeking office space here.

“We’re seeing the office market explode with an influx of tech companies,” said Donnette Clarens of Cornish Carey Commercial Newmark Knight Frank, DotLoop’s broker.

The Allisons – high school sweethearts – did an initial foray in May, seeking a base for DotLoop and an apartment for themselves, and lost out on some places by not pouncing quickly enough. They returned for two whirlwind days of hunting in late June.

Austin Allison dropped out of his second year of law school in 2009 to found DotLoop, which automates paperwork for real estate agents. Launched with angel capital, the company became profitable in 17 months, he said. In May, to accelerate growth, it took $7 million in funding from Trinity Ventures.

San Francisco is the clear place for that expansion to happen, he said.

“San Francisco has a talent pool that is different and more robust than the talent pool that exists in the Midwest,” he said. “Our office here will become our bleeding-edge tech arm, but our internal operations will stay in Cincinnati.”

He wants to hire 10 to 20 people in San Francisco within the next year. Having an office that projects the right vibe – “fun, cool, energetic, with lots of natural light, high ceilings and an open floor plan” and near amenities and transit – is a key part of recruitment, he said. Another big consideration is flexibility: a space that can grow with the company, or a shorter lease period in case it needs to relocate.

Then there’s price. “We want to be scrappy and prudent, but we don’t want to scrimp by holing up in a cave,” he said.

Average rents

DotLoop wanted to pay in the mid-$40s per square foot per year. That’s on target with the city’s first-quarter average rent of $46.66 a square foot, as tracked by Jones Lang LaSalle, which notes that rates are up 39 percent from the market bottom in 2010. The firm needs about 2,000 square feet to start.

Austin Allison has a strong preference to be in SoMa, near other up-and-coming tech firms. SoMa’s vacancy rate is 3.8 percent, Jones Lang LaSalle said; it hasn’t been that low since the height of the dot-com boom in 2000.

While incubator spaces offer flexibility, he feels DotLoop is past the startup phase of working cheek by jowl with other nascent companies, just as people outgrow group houses after college.

“We are a real company with products, revenue and customers, not a three-person startup with an idea,” he said. “Our space should reflect that.”

Like other tech folks, he eschews the type of traditional offices inhabited by lawyers and accountants.

That’s spurred an odd trend downtown: Landlords rip out walls and ceilings so Class A offices will look more like old warehouses.

“They are exposing natural brick that’s been sheet-rocked up for years, opening up the ceilings, trying to maximize window lines to get great light,” Clarens said. “It’s all about making it more attractive to creative-user tenants.”

Austin Allison made offers on two offices: A space one floor above the open-floor-plan Second Street office and a cheaper sublet. After two weeks of negotiations, DotLoop signed for the Second Street space, agreeing to a two-year lease on 1,900 square feet in the low $40s. A big plus was a contiguous office that will be available in a year, offering room to grow.

Housing budget

On the housing front, the Allisons were in the lucky position of having a $4,000-a-month budget. At that price range, they didn’t have to deal with cattle-call open houses where dozens of hopefuls jostle for favor with a rental agent.

Still, it was competitive. In May, they were surprised when apartments they toured got snapped up within hours.

The couple’s apartment wish list mirrored that for DotLoop’s office space.

“We’re steeped in that world of lofts with high ceilings and an industrial feel,” Angela said. “Most San Francisco places are older in style; SoMa and South Beach are the only areas with robust modern architecture.”

They decided to boost their monthly budget to $6,000, because a second bedroom to host DotLoop’s Cincinnati employees was a must.

They looked at condos being sublet and apartments for rent in several high-end high-rises: The Infinity near the Ferry Building, the Paramount and the Metropolitan in SoMa.

Sticker shock

A converted loft in a smaller building in Mint Plaza appealed to both for its industrial aesthetic – but it had just one bedroom. At the Brannan in South Park, a stunning view of the bay and ATT Park was a draw, but the $6,000-a-month condo’s biggest pluses were that it came fully furnished in a sleek, modern style; had two bed/bath suites separated by the living/dining room; and was near Highway 101 for quick access to SFO.

They decided to go for it and signed a one-year lease.

Not surprisingly, the couple had some sticker shock.

“Our Cincinnati condo is about $350,000; it easily would be $1.5 million out here,” Austin said. “Our Cincinnati office is less than $10 a square foot. It’s extremely competitive out here; the landlord has more leverage to dictate how the game is played.”

Carolyn Said is a San Francisco Chronicle staff writer. E-mail: csaid@sfchronicle.com

Article source: http://www.sfgate.com/realestate/article/Tech-firms-seeks-perfect-space-in-S-F-3691082.php

Two RD buildings aggregating approximately 101,000 square feet are at
904 East Caribbean Drive and 1339 Moffett Park Drive and one
distribution building of approximately 71,000 square feet is at 914-918
East Caribbean Drive, within Silicon Valley’s Moffett Park submarket.
The properties are adjacent to Highways 237 and 101 and are 100% leased
to two tenants. The estimated stabilized cap rate of the property is
7.1%.

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 is an acquirer, owner and operator of
industrial real estate located 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./Baltimore.

Additional information about Terreno Realty Corporation is available on
the company’s web site at www.terreno.com.

Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of the federal securities laws. We caution investors that
forward-looking statements are based on management’s beliefs and on
assumptions made by, and information currently available to, management.
When used, the words “anticipate”, “believe”, “estimate”, “expect”,
“intend”, “may”, “might”, “plan”, “project”, “result”, “should”, “will”,
and similar expressions which do not relate solely to historical matters
are intended to identify forward-looking statements. These statements
are subject to risks, uncertainties, and assumptions and are not
guarantees of future performance, which may be affected by known and
unknown risks, trends, uncertainties, and factors that are beyond our
control, including risks related to our ability to meet our estimated
forecasts related to stabilized cap rates and those risk factors
contained in our Annual Report on Form 10-K for the year ended December
31, 2011 and our other public filings. Should one or more of these risks
or uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those anticipated,
estimated, or projected. We expressly disclaim any responsibility to
update our forward-looking statements, whether as a result of new
information, future events, or otherwise.

Article source: http://www.businesswire.com/news/home/20120705005110/en/Terreno-Realty-Corporation-Acquires-Buildings-Sunnyvale-CA