SAN FRANCISCO--(BUSINESS WIRE)--Terreno Realty Corporation (NYSE:TRNO), an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, acquired an industrial property located in Newark, New Jersey for a purchase price of approximately $6.3 million on May 7, 2018 and made a senior secured loan of $55.0 million on May 4, 2018.

The property consists of an improved land parcel of approximately 3.5 acres at 85 Doremus Avenue, immediately adjacent to Exit 15E of the New Jersey Turnpike, which is 100% leased to one tenant. The estimated stabilized cap rate of the property is 5.1%.

The senior secured loan has a term of two years, an interest rate of 8.0%, and is secured by a portfolio of nine improved land parcels primarily located in Newark and Kearny, New Jersey. One of the properties securing the loan may be put to Terreno Realty Corporation as partial payment of the loan. This property, and two others, may be called by Terreno Realty Corporation as partial or full payment of the loan. More information on these properties follows:

Put/Call Option Property:
87 Doremus Avenue, Newark – 9.8 acres approximately 31% leased to one tenant priced at $20.0 million.

Call Option Properties:
81 North Hackensack Avenue, Kearny – 16.9 acres 100% leased to one tenant priced at $25.0 million; and

48 Third Street and 280-286 Central Avenue, Kearny – 7.9 acres 100% leased to three tenants priced at approximately $14.1 million.

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.