Back to top

Analyst Blog

San Francisco-based Terreno Realty Corporation (TRNO - Snapshot Report) announced the acquisition of two industrial properties in Carlstadt, N.J. The company shelled out about $9.9 million for the purchase. Spanning 90,000 square feet across 3.2 acres, the two industrial buildings are currently 97% leased to 3 tenants.

The buildings are situated in the central Meadowlands submarket adjoining Highways 3 and 17 and close to Exit 16W of the New Jersey Turnpike. The property’s estimated stabilized cap rate is 5.7%.

The acquisition is a strategic fit for Terreno Realty as it would help boost its strong tenant base. Moreover, it is expected to prove accretive to the company’s earnings going forward.  

Terreno Realty owns and operates industrial real estate properties mainly in 6 major coastal markets of the U.S. – the high barriers-to-entry markets of Los Angeles; Northern New Jersey/New York City; San Francisco Bay Area; Seattle; Miami; and Washington, D.C./Baltimore. Lately, Terreno Realty has been active in capitalizing on opportunities to strengthen its foothold in these areas and opted for acquisitions as well as lease deals.

Earlier this month, Terreno Realty disclosed the acquisition of an industrial property in East Hanover, NJ for approximately $20.0 million. Notably, the company acquired three industrial properties comprising five buildings spanning approximately 250,000 square feet for around $37.8 million during third-quarter 2013.  

Moreover, adding catalysts to its top line, earlier this month this industrial real estate investment trust (REIT) disclosed two lease deals at its industrial properties in Commerce, California and Elizabeth, NJ.

Specifically, the deal in Commerce is for a lease of 64,320 square feet of space to a regional grocer at Garfield Business Center that begins on Nov 1, 2013 and expires on Mar 31, 2019. The other deal in Elizabeth involves leasing of 75,000 square feet at its recently renovated industrial property. The deal, which was inked with a third-party logistics company, starts Oct 1, 2013 and expires Dec 31, 2018.

Terreno Realty currently holds a Zacks Rank #4 (Sell). However, other REITs that are performing well and deserve a look include Chatham Lodging Trust (CLDT - Snapshot Report), Parkway Properties Inc. (PKY - Snapshot Report) and Sotherly Hotels Inc. (SOHO). All these stocks carry a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%
STRATTEC SE… STRT 80.24 +3.00%