In tune with its ongoing acquisition spree, Terreno Realty Corporation (TRNO) bought four buildings (about 229,000 square feet) and an adjacent land parcel (0.2 acre) in JFK Airgate in Queens, NY for around $53.1 million. The 98.6% leased property is occupied by 18 well-known international air cargo and logistics firms.
JFK Airgate Center comprised 3 industrial warehouses and 1 office property – Airgate I, II, III and IV – along with an underground parking facility. Situated about one-half mile north of John F. Kennedy International airport, JFK Airgate is located in proximity to the Belt Parkway, Rockaway Boulevard and the Van Wyck Expressway.
The assets’ estimated stabilized cap rate is 5.3%. For Terreno Realty, the acquisition is a strategic fit as it would help boost its portfolio base and tenant mix. Also, it is expected to prove accretive to the company’s earnings, going forward.
Notably, Terreno Realty has been active in capitalizing on opportunities to expand its foothold in these areas and has opted for industrial properties acquisitions. Accordingly, in recent times, this real estate investment trust (REIT) disclosed the buyout of an industrial property in Landover, MD for about $7.0 million.
Also, the company bought Gardena, CA-based and Lanham, MD-based industrial assets for roughly $6.0 million and $5.6 million, respectively. These moves are poised to strengthen the growth prospects of this industrial real asset managing company.
Terreno Realty currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the REIT-Equity Trust – Other industry include First Industrial Realty Trust Inc. (FR), Piedmont Office Realty Trust Inc. (PDM) and SL Green Realty Corp. (SLG). All these stocks carry a Zacks Rank #2 (Buy).
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