Terreno Realty Corporation, owner and operator of industrial real estate in six major coastal U.S. markets, has acquired an industrial property located in East Williamsburg in Brooklyn for a purchase price of approximately $12.0 million.
The property consists of one industrial distribution building containing approximately 24,000 square feet on 0.7 acres. The property is at 181 Lombardy Street adjacent to the Brooklyn-Queens Expressway, provides one dock-high and one grade-level loading position and parking for 10 cars. The property is vacant and the estimated stabilized cap rate is 5.7%.
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.
