In a notable development, Terreno Realty Corp. TRNO announced the acquisition of an industrial property in Union City, CA. Valued at around $37.3 million, this buyout is consistent with this industrial real estate investment trust’s (“REIT”) strategy of enhancing its industrial property portfolio in the major U.S. markets.
The acquired property comprises four recently built, rear-load industrial distribution buildings, spanning about 301,000 square feet of space and spread over an area of around 16.4 acres. This industrial property is strategically located in the East Bay of San Francisco, next to Interstate 880, and between the California Highways 92 and 84.
Importantly, during the construction of the four buildings, three leases were executed, aggregating 193,560 square feet. These leases involved one full building lease with a global third-party logistics company for 94,046 square feet of space. This lease will expire in Mar 2021.
The second one, which will expire in May 2026, leased 64,324 square foot of space to an international distributor of natural stone. The third lease, with an automobile glass distributor for 35,190 square foot of space, will expire in Apr 2026. Including these leases, the property is around 64.4% leased at the moment.
We expect the latest acquisition to boost Terreno Realty’s bottom line, going forward. This San Francisco, CA-based REIT actively focuses on leveraging the improving fundamentals of industrial markets, bolstering its business in key coastal U.S. markets like Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, D.C./Baltimore.
Terreno Realty currently carries a Zacks Rank #3 (Hold).
Investors interested in REITs may consider stocks like Extra Space Storage Inc. EXR, Public Storage PSA and Sovran Self Storage Inc. SSS. All these stocks have a Zacks Rank #2 (Buy).
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