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Terreno Realty (TRNO) Continues Buyout Spree With $7.9M Buyout
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Terreno Realty Corporation (TRNO - Free Report) recently shelled out $7.9 million for the purchase of an industrial property in Hawthorne, CA. The move comes as part of its acquisition-driven growth strategy.
The Hawthorne property at 13025 Cerise Avenue comprises one industrial distribution building containing around 21,000 square feet of space on 1.5 acres. It is next to the company’s 13020 and 13030 Cerise Avenue buildings, south of I-105 and between I-405 and I-110, indicating an advantageous location and positioning it well to lure tenants. Currently, the property is fully leased to one tenant until May 2024. The estimated stabilized cap rate of the property is 2.9%.
Amid an e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies, demand for industrial real estate space has been shooting up. In addition, apart from the fast adoption of e-commerce, the industrial 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 the functional assets at in-fill locations, which enjoy high-population densities and are located near high-volume distribution points.
Recently, the company shelled out $26.3 million for the purchase of an industrial property in Kearny, NJ. Prior to this, it announced the buyout of an industrial property in Carlstadt, NJ for $17.9 million, and an industrial property in Hayward, CA, for $8.3 million.
The company is well poised on the back of these efforts to enhance 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 the pricing power. New supply is likely to put pressure on the 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 six months, the company’s shares have gained 8.1% compared with its industry's rally of 6.7%.
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Terreno Realty (TRNO) Continues Buyout Spree With $7.9M Buyout
Terreno Realty Corporation (TRNO - Free Report) recently shelled out $7.9 million for the purchase of an industrial property in Hawthorne, CA. The move comes as part of its acquisition-driven growth strategy.
The Hawthorne property at 13025 Cerise Avenue comprises one industrial distribution building containing around 21,000 square feet of space on 1.5 acres. It is next to the company’s 13020 and 13030 Cerise Avenue buildings, south of I-105 and between I-405 and I-110, indicating an advantageous location and positioning it well to lure tenants. Currently, the property is fully leased to one tenant until May 2024. The estimated stabilized cap rate of the property is 2.9%.
Amid an e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies, demand for industrial real estate space has been shooting up. In addition, apart from the fast adoption of e-commerce, the industrial 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 the functional assets at in-fill locations, which enjoy high-population densities and are located near high-volume distribution points.
Recently, the company shelled out $26.3 million for the purchase of an industrial property in Kearny, NJ. Prior to this, it announced the buyout of an industrial property in Carlstadt, NJ for $17.9 million, and an industrial property in Hayward, CA, for $8.3 million.
The company is well poised on the back of these efforts to enhance 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 the pricing power. New supply is likely to put pressure on the 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 six months, the company’s shares have gained 8.1% compared with its industry's rally of 6.7%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.