Provides Development Update on Countyline Corporate Park Phase IV
Terreno Realty Corporation (NYSE:TRNO), an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, announced today that it has executed a lease for 41,000 square feet in Hialeah, Florida with an international logistics services provider. The ten-year lease is expected to commence in November 2023 upon completion of tenant improvements. Building 41 of Terreno Realty Corporation’s Countyline Corporate Park Phase IV, a 191,000 square foot, 32-foot clear height rear-load industrial distribution building, is now 100% pre-leased and is expected to complete construction in the third quarter of 2023 and achieve LEED certification. Total estimated investment is $41.4 million and the expected stabilized cap rate is 5.1%.
Building 38 of Terreno Realty Corporation’s Countyline Corporate Park Phase IV, a 506,000 square foot 36-foot clear height cross-dock industrial distribution building, is under construction and expected to be completed in the third quarter of 2024. Building 38 is 100% pre-leased and expected to achieve LEED certification. Total estimated investment is $88.8 million and the estimated stabilized cap rate is 5.0%.
During the second quarter of 2023 Terreno Realty Corporation commenced construction of buildings 39 and 40 of Terreno Realty Corporation’s Countyline Corporate Park Phase IV. The buildings, expected to achieve LEED certification and achieve stabilization in the fourth quarter of 2024, will be 36-foot clear height rear-load industrial distribution buildings containing in aggregate 364,000 square feet. Total estimated investment is $84.6 million and the estimated stabilized cap rate is 6.0%.
Countyline Corporate Park Phase IV is a 121-acre project entitled for 2.2 million square feet of industrial distribution buildings in Miami’s Countyline Corporate Park (“Countyline”), immediately adjacent to Terreno Realty Corporation’s seven fully-leased buildings within Countyline (Countyline Corporate Park Phase III). Countyline is a landfill redevelopment adjacent to Florida’s Turnpike and the southern terminus of I-75 located at the intersection of NW 170th Street and NW 107th Avenue. At expected completion in 2025, Countyline Phase IV is expected to contain ten LEED-certified industrial distribution buildings totaling approximately 2.2 million square feet providing 660 dock-high and 22 grade-level loading positions and parking for 1,875 cars for a total expected investment of approximately $492.7 million.
Taken together, Terreno Realty Corporation’s Countyline Corporate Park Phase III and IV will contain 17 industrial distribution buildings and 3.5 million square feet.
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.
Additional information about Terreno Realty Corporation is available on the company’s web site at www.terreno.com.
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,” “seek,” “target,” “see,” “likely,” “position,” “opportunity,” “outlook,” “potential,” “enthusiastic,” “future” 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, the impact of the COVID-19 pandemic on our business, our tenants and the national and local economies, and those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2022 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, except as required by law. Accordingly, investors should use caution in relying on past forward-looking statements, which are based on results and trends at the time they are made, to anticipate future results or trends.
Jaime Cannon 415-655-4580