San Francisco-based Terreno Realty Corporation (TRNO) recently announced the acquisition of an industrial property in Burien, Wash. The company shelled out approximately $6.5 million for this purchase. Spanning 69,000 square feet across 4.8 acres, this multi-tenant industrial distribution building is 89% leased currently.
This cross-dock airfreight building has locational advantage as it is situated next to the south side of SeaTac International Airport. It offers 49 dock-high and 10 drive-in doors. The property’s estimated stabilized cap rate is 5.6%.
The purchase is a strategic fit for Terreno Realty and would help bolster its strong tenant base. Moreover, it will likely prove accretive to the earnings going forward and improve the company’s top line.
Earlier in March, Terreno Realty purchased an industrial property in Medley, Fla. for roughly $5.1 million. The acquired property comprises 1 industrial building that spans 49,000 square feet across 5.4 acres. It also represents the company’s 10th building in the Miami-Dade County and is fully leased to a single tenant.
Terreno Realty owns and operates industrial real estate properties primarily in 6 major coastal markets of the U.S. – the high barriers-to-entry markets of Los Angeles, Northern New Jersey, San Francisco Bay Area, Seattle, Miami and Washington D.C. Lately, Terreno Realty has been active in capitalizing on opportunities to strengthen its foothold in these areas and opted for acquisitions as well as lease extension and renewal deals.
Terreno Realty currently holds a Zacks Rank #3 (Hold). REITs that are performing better than the company include Simon Property Group Inc. (SPG), Cousins Properties Inc. (CUZ) and Agree Realty Corp. (ADC), all carrying a Zacks Rank #2 (Buy).
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