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Terreno Realty (TRNO) Continues Buyout Spree With $16.5M Buyout
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Terreno Realty Corporation (TRNO - Free Report) recently shelled out $16.5 million for the purchase of an industrial property in Seattle, WA. The move comes as part of its acquisition-driven growth strategy.
The property comprises one industrial distribution building encompassing roughly 19,000 square feet and two flex buildings containing a total of approximately 33,000 square feet on 2.9 acres of land.
With an advantageous location at 2454 Occidental Avenue South in Seattle’s SoDo District, this property offers 12 dock-high and two grade-level loading positions and parking for 127 cars. It is 92% leased to five tenants. All of the leases will expire by June 2023. It has an estimated stabilized cap rate of 4.6%.
Notably, amid an e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies, demand for logistics infrastructure and efficient distribution networks has been shooting up. This is aiding the industrial real estate market to prosper.
In addition, apart from the fast adoption of e-commerce, logistics real estate is anticipated to benefit from a likely increase in inventory levels post the global health crisis, offering scope to industrial landlords, including Terreno Realty, Duke Realty , Prologis (PLD - Free Report) and Rexford Industrial Realty, Inc. (REXR - Free Report) , among others, to enjoy a favorable market environment.
Terreno Realty is also banking on such scopes and is focused on expanding its portfolio on acquisitions. It targets functional assets at in-fill locations, which enjoy high-population densities and are located near high-volume distribution points. Recently, the company acquired an industrial property in Torrance, CA, for $6.3 million.
The company is well poised on the back of these efforts to fortify its portfolio in the six major coastal U.S. markets — Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, DC — which display solid demographic trends and witness healthy demand for industrial real estates.
However, with the asset category being attractive in these challenging times, there is a development boom in a number of markets. This high supply is likely to intensify competition and curb pricing power. New supply is likely to put pressure on vacancy level, which is likely to increase to some extent in the upcoming quarters.
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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Terreno Realty (TRNO) Continues Buyout Spree With $16.5M Buyout
Terreno Realty Corporation (TRNO - Free Report) recently shelled out $16.5 million for the purchase of an industrial property in Seattle, WA. The move comes as part of its acquisition-driven growth strategy.
The property comprises one industrial distribution building encompassing roughly 19,000 square feet and two flex buildings containing a total of approximately 33,000 square feet on 2.9 acres of land.
With an advantageous location at 2454 Occidental Avenue South in Seattle’s SoDo District, this property offers 12 dock-high and two grade-level loading positions and parking for 127 cars. It is 92% leased to five tenants. All of the leases will expire by June 2023. It has an estimated stabilized cap rate of 4.6%.
Notably, amid an e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies, demand for logistics infrastructure and efficient distribution networks has been shooting up. This is aiding the industrial real estate market to prosper.
In addition, apart from the fast adoption of e-commerce, logistics real estate is anticipated to benefit from a likely increase in inventory levels post the global health crisis, offering scope to industrial landlords, including Terreno Realty, Duke Realty , Prologis (PLD - Free Report) and Rexford Industrial Realty, Inc. (REXR - Free Report) , among others, to enjoy a favorable market environment.
Terreno Realty is also banking on such scopes and is focused on expanding its portfolio on acquisitions. It targets functional assets at in-fill locations, which enjoy high-population densities and are located near high-volume distribution points. Recently, the company acquired an industrial property in Torrance, CA, for $6.3 million.
The company is well poised on the back of these efforts to fortify its portfolio in the six major coastal U.S. markets — Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, DC — which display solid demographic trends and witness healthy demand for industrial real estates.
However, with the asset category being attractive in these challenging times, there is a development boom in a number of markets. This high supply is likely to intensify competition and curb pricing power. New supply is likely to put pressure on vacancy level, which is likely to increase to some extent in the upcoming quarters.
Terreno Realty currently carries a Zacks Rank #3 (Hold). In the past three months, the company’s shares have gained 7.5% compared with its industry's rally of 8.1%.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>