Terreno Realty Corporation, an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, announced that it has acquired an industrial property located in Brooklyn, New York for $80.5 million.
The property, at 134-154 Morgan Avenue, consists of two industrial distribution buildings containing approximately 192,000 square feet on 6.0 acres in East Williamsburg.
The industrial property in Brooklyn is 100% leased to eight tenants, all of which expire within four years. The estimated stabilized cap rate of the property is 4.0%.
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.