Terreno Realty announces redevelopment in two-building property in California

Terreno Realty announced the commencement of the redevelopment of Terreno Realty Corporation’s 231,000 square foot two-building property on 11.1 acres in Gardena, California. The property at 1855 W 139th Street is south of I-105 and between I-405 and I-110. After demolition of the existing buildings and redevelopment, expected to be completed in 2027, the property will contain three industrial buildings totaling 228,000 square feet with 34 dock-high and 17 grade-level loading positions and parking for 332 cars for a total expected additional investment of $64M. The redeveloped property is expected to achieve LEED certification and the estimated stabilized cap rate is 6.1%. Terreno Realty Corporation has executed a short-term lease for the existing property with an e-commerce firm that commenced January 19, 2024 and will expire January 2026. Estimated stabilized cap rates are calculated as annualized cash basis net operating income stabilized to market occupancy 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.