Terreno Completes $427M Industrial Portfolio Acquisition
Terreno Realty Corp. has finalized its industrial portfolio acquisition after making its first splash over the summer. The Bellevue, Washington-based firm announced today that it acquired two more assets for around $194.3 million.
The properties, spanning roughly 509,000 square feet across 27.6 acres, are located in Kearny, New Jersey and Doral, Florida. Also, they are spread across three buildings in total, with occupancy at just about 36 percent.
The move is a part of the full multi-market portfolio, which was originally announced by Terreno in August, when it revealed the roughly 1.2 million square feet in industrial assets it bought for $232.6 million, taking the total number now to $426.9 million officially. At the time, Terreno said the 1.2 million square feet of properties were operated by 26 tenants and 91 percent leased.
The company estimates the cap rate of the entire portfolio to be five percent.
Terreno in a July statement said that it operated a total of 297 buildings, taking up a total of 18.9 million square feet. The firm owns industrial properties in several major coastal markets, including Miami, New York City/Northern Jersey, Los Angeles, the Bay Area, Washington D.C and Seattle.
Overall, the industrial sector faces headwinds due to uncertainty from tariffs. A recent forecast from NAIOP predicts that net absorption will stay “nearly flat” through the second half of the year, as supply has been outpacing demand. A recession could cause negative absorption through early 2026, NAIOP warned.
Source: GlobeSt/ALM