Terreno Realty Buys Maryland Assets

Zacks

San Francisco-based Terreno Realty Corporation (TRNO) announced the acquisition of an industrial property in Elkridge, Md. The company shelled out approximately $16.7 million for this purchase. Spanning 349,000 square feet across 17.9 acres, the two multi-tenant industrial distribution buildings are 64% leased currently.

The two buildings – 6675 Amberton Drive and 6660 Santa Barbara Road – enjoy locational advantage for being close to I-95, US Route 1 and Maryland Route 100 in the Baltimore/Washington Corridor. The two buildings offer 107 dock-high and 10 drive-in doors. The property’s estimated stabilized cap rate is 8.0%.

We view the acquisition as a strategic fit for Terreno Realty as it would help bolster its strong tenant base. Moreover, it will likely prove accretive to the earnings going forward and facilitate top-line improvement.
 
Only last month, Terreno Realty purchased a portfolio comprising 6 buildings in Doral, Fla. The company paid $23.7 million for this portfolio that spans 307,000 square feet. These multi-tenant distribution buildings were 70% occupied at the time of purchase.

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). However, REITs that are performing better than the company include Sunstone Hotel Investors Inc. (SHO) carrying a Zacks Rank #1(Strong Buy), and Host Hotels & Resorts Inc. (HST) and Diamondrock Hospitality Co. (DRH), both of which have a Zacks Rank #2 (Buy).
 

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