As part of its acquisition-driven growth strategy, Terreno Realty (TRNO - Free Report) recently announced the acquisition of an industrial property in Red Hook, Brooklyn, NY, for $27.5 million. Presently, the property is 66% leased to 19 tenants, and the estimated stabilized cap rate is 6.4%.
Located at 185 Van Dyke Street, the property comprises one industrial flex building containing roughly 96,000 square feet on 3.8 acres. With an advantageous location on the Upper New York Bay waterfront and two dock-high and ten grade-level loading positions and off-street parking for 26 cars, the property is likely to lure tenants.
Demand for industrial real estate space has been shooting up amid an e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies. Banking on such opportunities, TRNO is expanding its portfolio through acquisitions. The company is targeting functional assets at in-fill locations. Such assets enjoy high population densities and are located near high-volume distribution points.
With such expansion efforts, Terreno Realty is well-poised to enhance its portfolio in six major coastal U.S. markets, namely, Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, D.C. These markets display solid demographic trends and witness healthy demand for industrial real estate.
Most recently, TRNO shelled out $45.7 million to purchase an industrial property in Redondo Beach, CA. Located at 2411 Santa Fe Avenue, the property comprises one industrial transshipment building containing roughly 67,000 square feet and one industrial flex building containing around 45,000 square feet on 6.7 acres. With a premium location — west of Interstate 405 between Los Angeles International Airport and the ports of Los Angeles and Long Beach — the property is 100% leased to two tenants, and the estimated stabilized cap rate is 5.3%.
Moreover, from the beginning of the current year through Sep 30, TRNO’s acquisitions totaled $410.8 million. The company has approximately $76.3 million of acquisitions under contract as of Sep 30, 2023.
Shares of Terreno Realty, currently carrying a Zacks Rank #3 (Hold), have risen 6.3% in the past year against the industry’s decline of 0.9%.
Apart from the fast adoption of e-commerce, the industrial real estate space is poised to gain traction over the long run from a likely rise in the inventory levels of companies as a precaution for any supply-chain disruption. This will offer opportunities to industrial landlords, including TRNO, Prologis (PLD - Free Report) and EastGroup Properties (EGP - Free Report) , to enjoy a favorable market environment.
Prologis carries a Zacks Rank of 3 at present. PLD’s long-term growth rate is projected at 8.9%. The Zacks Consensus Estimate for the company’s 2023 funds from operations (FFO) per share of $5.59 suggests an 8.3% year-over-year increase. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EastGroup Properties has a Zacks Rank of 2 (Buy). The Zacks Consensus Estimate for EastGroup Properties’ current-year FFO per share has moved marginally north over the past month to $7.64, calling for a 9.1% increase year over year.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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As part of its acquisition-driven growth strategy, Terreno Realty (TRNO - Free Report) recently announced the acquisition of an industrial property in Red Hook, Brooklyn, NY, for $27.5 million. Presently, the property is 66% leased to 19 tenants, and the estimated stabilized cap rate is 6.4%.
Located at 185 Van Dyke Street, the property comprises one industrial flex building containing roughly 96,000 square feet on 3.8 acres. With an advantageous location on the Upper New York Bay waterfront and two dock-high and ten grade-level loading positions and off-street parking for 26 cars, the property is likely to lure tenants.
Demand for industrial real estate space has been shooting up amid an e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies. Banking on such opportunities, TRNO is expanding its portfolio through acquisitions. The company is targeting functional assets at in-fill locations. Such assets enjoy high population densities and are located near high-volume distribution points.
With such expansion efforts, Terreno Realty is well-poised to enhance its portfolio in six major coastal U.S. markets, namely, Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, D.C. These markets display solid demographic trends and witness healthy demand for industrial real estate.
Most recently, TRNO shelled out $45.7 million to purchase an industrial property in Redondo Beach, CA. Located at 2411 Santa Fe Avenue, the property comprises one industrial transshipment building containing roughly 67,000 square feet and one industrial flex building containing around 45,000 square feet on 6.7 acres. With a premium location — west of Interstate 405 between Los Angeles International Airport and the ports of Los Angeles and Long Beach — the property is 100% leased to two tenants, and the estimated stabilized cap rate is 5.3%.
Moreover, from the beginning of the current year through Sep 30, TRNO’s acquisitions totaled $410.8 million. The company has approximately $76.3 million of acquisitions under contract as of Sep 30, 2023.
Shares of Terreno Realty, currently carrying a Zacks Rank #3 (Hold), have risen 6.3% in the past year against the industry’s decline of 0.9%.
Apart from the fast adoption of e-commerce, the industrial real estate space is poised to gain traction over the long run from a likely rise in the inventory levels of companies as a precaution for any supply-chain disruption. This will offer opportunities to industrial landlords, including TRNO, Prologis (PLD - Free Report) and EastGroup Properties (EGP - Free Report) , to enjoy a favorable market environment.
Prologis carries a Zacks Rank of 3 at present. PLD’s long-term growth rate is projected at 8.9%. The Zacks Consensus Estimate for the company’s 2023 funds from operations (FFO) per share of $5.59 suggests an 8.3% year-over-year increase. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EastGroup Properties has a Zacks Rank of 2 (Buy). The Zacks Consensus Estimate for EastGroup Properties’ current-year FFO per share has moved marginally north over the past month to $7.64, calling for a 9.1% increase year over year.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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