- Oops!Something went wrong.Please try again later.
Terreno Realty Corporation TRNO recently announced the completion of the redevelopment of its property on 6th Avenue South in Seattle, WA. Per the company, it has leased the entire property to a leading manufacturer of electric vehicles.
The redeveloped property comprises a revamped industrial distribution building spanning an area of 51,000 square foot on 1.7 acres. This property is situated about two miles from downtown Seattle, near the Port and SoDo districts. The total cost of the revamped property is $15.9 million and the estimated stabilized cap rate is 5.1%.
Terreno is focused on an acquisition-driven growth strategy. It targets functional buildings at in-fill locations, which enjoy high-population densities and are located near high volume-distribution points. Through such efforts, the company is well poised to fortify its portfolio in six major coastal U.S. markets — Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, DC — which display solid demographic trends and witness healthy demand for industrial real estates.
In May, Terreno completed the acquisition of another industrial property in Seattle, WA, for $5.6 million. The improved land parcel, spanning 13,000 square feet at 36 South Hudson Street, is within three blocks of Terreno’s SoDo Row redevelopment property and three additional Terreno properties. The property is fully leased to one tenant through December 2021, the estimated stabilized cap rate being 4%.
Amid the e-commerce boom and supply-chain strategy transformations, demand for industrial real estate has been strong. In light of the coronavirus pandemic, warehouse operations have become more essential with the fast adoption of e-commerce. Moreover, over the long term, apart from the accelerated adoption of e-commerce, logistics real estate is anticipated to benefit from the likely increase in inventory levels post the coronavirus crisis. This will open up solid prospects for Terreno Realty and other industrial REITs like Duke Realty Corp. DRE, Prologis PLD and Rexford Industrial Realty, Inc. REXR.
However, the pandemic’s adverse impact on the economy will likely thwart demand for space in the near term. Rent relief and deferrals are added concerns.
Shares of this Zacks Rank #3 (Hold) company have appreciated 5.8% over the past year, as against the 12.0% decline of its industry. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Prologis, Inc. (PLD) : Free Stock Analysis Report
Duke Realty Corporation (DRE) : Free Stock Analysis Report
Terreno Realty Corporation (TRNO) : Free Stock Analysis Report
Rexford Industrial Realty, Inc. (REXR) : Free Stock Analysis Report
To read this article on Zacks.com click here.