Terreno Realty Corporation Announces Pricing of Initial Public Offering

SAN FRANCISCO--(BUSINESS WIRE)--Terreno Realty Corporation (the “Company”) (NYSE:TRNO), which intends to acquire, own and operate industrial real estate located in six major coastal U.S. markets, today announced it has priced its initial public offering of 8,750,000 shares of common stock, $0.01 par value per share, at $20 per share. The shares of common stock of the Company are scheduled to begin trading on February 10, 2010 on the New York Stock Exchange under the symbol “TRNO.” The offering is expected to close on February 16, 2010. To the extent the underwriters sell more than 8,750,000 shares, the underwriters have a 30-day option to purchase up to an additional 1,312,500 shares.

Concurrent with the closing of the offering, the Company will complete a private placement of an aggregate of 350,000 shares of common stock, at a price of $20 per share, to W. Blake Baird, the Company’s Chairman and Chief Executive Officer, and Michael A. Coke, the Company’s President and Chief Financial Officer.

The gross proceeds of the initial public offering and the concurrent private placement, before deducting the underwriting discount and expenses related to the offering, are expected to be approximately $182 million (assuming the underwriters' option to purchase additional shares is not exercised). The Company intends to use the net proceeds from the initial public offering and the concurrent private placement to invest in industrial properties in accordance with the Company’s investment strategy and for general business purposes.

Goldman, Sachs & Co. is acting as the sole book-running manager for the initial public offering. KeyBanc Capital Markets Inc. is acting as a lead manager. Robert W. Baird & Co. Incorporated and Stifel, Nicolaus & Company, Incorporated are acting as co-managers.

A registration statement relating to the shares of the Company’s common stock offered in the initial public offering has been declared effective by the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The initial public offering is being made solely by means of a prospectus.

A copy of the final prospectus, when available, can be obtained by contacting Goldman, Sachs & Co., Prospectus Department, 85 Broad Street, New York, NY 10004, telephone: [phone], facsimile: 212-902-9316 or by emailing [e-mail].

About Terreno Realty Corporation

Terreno Realty Corporation is an internally managed real estate investment trust (REIT) focused on acquiring industrial real estate located in six major coastal U.S. markets: Los Angeles Area; Northern New Jersey/New York City; San Francisco Bay Area; Seattle Area; Miami Area; and Washington, D.C./Baltimore.

Warning Regarding Forward-Looking Statements

This press release contains forward-looking statements. These forward-looking statements are based upon the Company’s present expectations, but these statements are not guaranteed to occur. For example, the fact that the initial public offering has priced may imply that the initial public offering and the concurrent private placement will close, but the closing is subject to conditions customary in transactions of this type and may be delayed or may not occur at all. In addition, the fact that the underwriters have an option to purchase additional shares may imply that this option will be exercised. However, the underwriters are not under any obligation to exercise this option, or any portion of it, and may not do so. Investors should not place undue reliance upon forward-looking statements.