Terreno Realty Corp Completes Successful Redevelopment in Santa Ana, California

Located at 1720 East Garry Avenue, the newly redeveloped site sits strategically adjacent to the Costa Mesa Freeway (CA 55) and is less than two miles from the critical intersection of CA 55 and I-405, as well as the John Wayne Airport in Orange County. This prime location is expected to attract a variety of businesses seeking efficient logistics and accessibility.

The property spans 4.9 acres and previously housed three multi-tenant office buildings, which have now been demolished to make way for a state-of-the-art 92,000 square foot rear-load industrial distribution facility. The total investment in this redevelopment project amounted to $41.3 million, reflecting Terreno's dedication to revitalizing industrial properties in key markets.

The new facility is equipped with ten dock-high and two grade-level loading positions, along with ample parking for 145 vehicles, catering to the operational needs of modern distribution companies. Notably, the building has achieved LEED Silver certification, indicating that it meets stringent environmental standards and showcases Terreno Realty's commitment to sustainability in industrial real estate.

Currently, the property is 100% leased to a provider of temperature-controlled life sciences supply chain solutions. This leasing success underscores the growing demand for specialized industrial spaces, particularly in sectors such as life sciences, which require specific operational capabilities.

The redevelopment is projected to yield an estimated stabilized cap rate of 5.1%. This metric is calculated based on the annualized cash basis net operating income stabilized to market occupancy—generally expected to be around 95%—divided by the total acquisition cost. The total acquisition cost includes the initial purchase price, adjustments for assumed debt, due diligence, closing costs, and any near-term capital expenditures necessary for stabilization.

Terreno Realty Corporation, known for its strategic acquisitions and operational excellence, focuses on industrial real estate in six major coastal U.S. markets, including New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle, and Washington, D.C. This latest redevelopment aligns with the company's strategy of enhancing its portfolio in high-demand areas.

In the press release, Terreno Realty Corporation included a cautionary note regarding forward-looking statements. The company emphasized that such statements are based on management’s beliefs and assumptions that could be affected by various risks and uncertainties. Investors are encouraged to consider the potential risks detailed in the company's Annual Report on Form 10-K for the year ended December 31, 2024, and other public filings.

As Terreno Realty continues to expand its footprint in the industrial real estate market, this redevelopment in Santa Ana serves as a testament to its adaptive strategy and responsiveness to market demands. For more information about Terreno Realty Corporation, interested parties can visit their website at www.terreno.com.

This redevelopment not only enhances the profile of Terreno Realty but also contributes to the economic growth of the Santa Ana area, positioning the company favorably for future developments and market opportunities.