Terreno Realty Corporation Acquires Buildings in Union City, CA for $23.8 Million

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 Union City, California on December 10, 2014 for a purchase price of approximately $23.8 million.

The property consists of one industrial distribution building containing approximately 133,000 square feet and two flex buildings containing approximately 37,000 square feet on 10.0 acres in the East Bay of San Francisco adjacent to Interstate 880 between California Highways 92 and 84. The property is at 33306-33580 Alvarado-Niles Road, provides 24 dock-high and 24 grade-level loading positions, parking for 243 cars, and is 98% leased to 25 tenants. The estimated stabilized cap rate of the property is 5.7%.

Further Terreno Realty Corporation has agreed to purchase four adjacent rear-load distribution buildings containing approximately 301,000 square feet that are currently under construction for a purchase price of approximately $37.2 million. This future acquisition is expected to close in the second quarter of 2015, subject to satisfactory completion of the buildings and customary closing conditions.

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 is an acquirer, owner and operator of 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./Baltimore.

Additional information about Terreno Realty Corporation is available on the company’s web site at www.terreno.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. We caution investors that forward-looking statements are based on management’s beliefs and on assumptions made by, and information currently available to, management. When used, the words “anticipate”, “believe”, “estimate”, “expect”, “intend”, “may”, “might”, “plan”, “project”, “result”, “should”, “will”, and similar expressions which do not relate solely to historical matters are intended to identify forward-looking statements. These statements are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control, including risks related to our ability to meet our estimated forecasts related to stabilized cap rates and those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2013 and our other public filings. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected. We expressly disclaim any responsibility to update our forward-looking statements, whether as a result of new information, future events, or otherwise.