Terreno Realty Corporation acquired an industrial property in Rancho Dominguez, California on August 3, 2022 for a purchase price of approximately $32.1 million. The 3.0-acre improved land parcel at 19500 South Alameda Street is south of the Gardena Freeway (SR 91) and west of the Long Beach Freeway (I-710). The property is 100% leased to two tenants on a short-term basis and the estimated stabilized cap rate is 5.5%.
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.