San Francisco-based Terreno Realty Corporation (TRNO) announced the acquisition of an industrial property in Jessup, Md. The company shelled out about $6.0 million for the purchase. Spanning 88,000 square feet across 5.9 acres, the property has one industrial distribution building that is currently 100% leased to one tenant.
The building is situated at 8215 Dorsey Run Road in Jessup adjoining Highway 1 and Route 32 in the central Baltimore/Washington Corridor. It offers 12 dock-high, 2 grade level and 10 van loading positions. The property’s estimated stabilized cap rate is 6.7%.
Terreno Realty owns and operates industrial real estate properties mainly in 6 major coastal markets of the U.S. – the high barriers-to-entry markets of Los Angeles; Northern New Jersey/New York City; San Francisco Bay Area; Seattle; Miami; and Washington, D.C./Baltimore. Terreno Realty has been active in capitalizing on opportunities to strengthen its foothold in these areas and opted for acquisitions as well as lease deals.
Last week, Terreno Realty announced the execution of two leases in its San Francisco Bay Area portfolio. One is for 40,420 square feet of space at 238 Lawrence in South San Francisco, and the other for a lease for 35,117 square feet at Warm Springs Boulevard in Fremont.
Moreover, adding catalysts to its top line, earlier this month this industrial real estate investment trust (:REIT) disclosed the acquisition of an industrial property in Piscataway, N.J. for approximately $7.0 million. Notably, the company acquired three industrial properties comprising five buildings spanning approximately 250,000 square feet for around $37.8 million during third-quarter 2013.
We believe that such opportunistic acquisitions would fuel Terreno Realty’s growth in the period ahead and help boost its strong tenant base. Moreover, it is expected to prove accretive to the company’s earnings going forward.
Terreno Realty currently holds a Zacks Rank #3 (Hold). However, other REITs that are performing well and deserve a look include Sabra Health Care REIT, Inc. (SBRA), Chatham Lodging Trust (CLDT) and Cousins Properties Incorporated (CUZ). While SBRA has a Zacks Rank #1 (Strong Buy), Chatham Lodging and Cousins Properties carry a Zacks Rank #2 (Buy).
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