Terreno Realty Corporation TRNO has announced the sale of an industrial property in Corona, CA. The property was sold for approximately $12.4 million on Mar 12.
This property at 2095 California Avenue consists of one industrial distribution building, spanning around 90,000 square feet, on a five-acre land. It is fully leased to a single tenant, at present. The company had shelled out nearly $7.8 million for purchasing this property on Jun 5, 2014.
Through this investment, Terreno Realty recognized an unleveraged internal rate of return of approximately 12.4%. Notably, the company’s efforts to realize value through asset sale will enhance its portfolio, while sale proceeds can be redeployed for accretive acquisitions.
In fact, the company recently acquired an industrial property in Kearny, NJ, for $25 million. The buyout comprises a 16.8-acre improved land parcel located at 81 North Hackensack Avenue. The property enjoys proximity to Exit 15E of the New Jersey Turnpike, U.S Routes 1 and 9, and the Pulaski Skyway. It is currently fully leased to one tenant.
Moreover, this February, Terreno Realty purchased an industrial property in Maspeth Queens, NY, for roughly $24 million. Built on two acres of land, the property consists of one industrial trans-shipment building, spanning nearly 18,000 square feet of space. It is situated adjacent to the intersection of the Brooklyn-Queens Expressway and the Long Island Expressway.
Notably, high-consumer spending, e-commerce boom, as well as healthy manufacturing environment amid recovering economy and job market are fueling demand for the industrial real estate category. This demand upside is creating encouraging growth opportunities for industrial REITs, including Terreno Realty, Duke Realty Corp. DRE, Prologis PLD and Liberty Property Trust LPT.
Terreno Realty, with respect to its portfolio investments, has been targeting functional buildings at in-fill locations, which enjoy high-population densities and are situated near high volume-distribution points. The company is fortifying its portfolio in six major port cities — Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. — which display solid demographic trends and witness healthy demand for industrial real estates.
However, any protectionist trade policies might impede economic growth, as well as affect industrial REITs’ businesses. Particularly, fears related to trade policy have the capability to disrupt supply chains and impact market fundamentals.
Terreno Realty currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Terreno Realty Corporation (TRNO) : Free Stock Analysis Report
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