Terreno Realty Corporation has acquired an industrial property in Torrance, California, for approximately $14.7 million. The company, which specializes in owning and operating industrial real estate across six major coastal U.S. markets, completed the purchase of the 36,000-square-foot industrial distribution building located at 20701 Manhattan Place, west of the I-405 freeway.

The property sits on 1.7 acres and includes six dock-high loading bays, two grade-level loading positions, and parking for 87 vehicles. At the time of acquisition, the building was fully leased to a single tenant with the lease term set to expire on November 30, 2026.

Terreno has secured a new lease agreement effective December 1, 2026, that will cover the entire building. The new tenant is a company specializing in the manufacture of floating sensors for autonomous maritime drones. This lease is set to run through February 2030.

The acquisition reflects an estimated stabilized capitalization rate of 6.0%. This rate is calculated based on the annual net operating income adjusted to a market occupancy rate, generally assumed to be 95%, relative to the total acquisition cost. These costs include the purchase price, adjustments related to assumed debt, due diligence and closing expenses, as well as projected near-term capital expenditures and leasing costs necessary to achieve stabilized occupancy.

Terreno Realty Corporation operates within six major U.S. coastal markets, including Los Angeles, New York City/Northern New Jersey, Miami, the San Francisco Bay Area, Seattle, and Washington, D.C. The recent purchase expands the company’s footprint in the Los Angeles area industrial real estate sector.