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Terreno Realty Expands Portfolio With Property Buyout in Queens

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Key Takeaways

  • TRNO acquired an industrial property in Queens, NY, for $16M with an estimated 3.9% stabilized cap rate.
  • The 36,000-sq-ft property is 100% leased to an insulation distributor through May 2028.
  • The site's location at 11-40 Borden Avenue is likely to lure tenants, making the acquisition a strategic fit.

Terreno Realty (TRNO - Free Report) has announced the acquisition of an industrial property in Long Island City, Queens, NY, for $16 million, in line with its acquisition-driven growth strategy. The transaction marks an estimated stabilized cap rate of 3.9%.

Located at 11-40 Borden Avenue, the property comprises one industrial distribution building containing roughly 36,000 square feet on 1 acres. It is 100% leased to an insulation distributor through May 2028. With an advantageous location adjacent to the entrance to the Queens-Midtown Tunnel and the Pulaski Bridge, the property is likely to lure tenants. Therefore, this acquisition seems a strategic fit.

TRNO’s Portfolio Growth Through Strategic Moves

TRNO has been actively restructuring its portfolio by disposing of non-core assets and acquiring value-accretive investments. Such efforts will aid long-term revenue growth. Last week, the company acquired an industrial property in Los Angeles, CA, for around $10 million. In May 2025, it sold two properties at an aggregate sale value of around $114.5 million. As of May 6, 2025, TRNO had acquisitions worth around $49 million under contract and nearly $75.8 million under letters of intent.

Moreover, as of March 31, 2025, Terreno had five properties under development or redevelopment. Post completion, these will comprise eight buildings spanning around 0.8 million square feet, which are 48% pre-leased. The company has around 22.4 acres of land dedicated to future developments at an estimated investment value of around $392.8 million.

With such expansion efforts, Terreno Realty is well-poised to enhance its portfolio in six major coastal U.S. markets, namely New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle and Washington, D.C. These markets display solid demographic trends and witness healthy demand for industrial real estate. However, macroeconomic uncertainty and tariff risks remain concerns.

Shares of this Zacks Rank #3 (Hold) company have gained 4.5% in the past month compared with the industry’s rise of 2.6%.

 

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Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Omega Healthcare Investors (OHI - Free Report) and W.P. Carey (WPC - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for OHI’s 2025 FFO per share has moved one cent northward to $3.02 over the past two months.

The Zacks Consensus Estimate for WPC’s 2025 FFO per share has been raised 1% upward to $4.88 over the past month.

Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.


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Omega Healthcare Investors, Inc. (OHI) - free report >>

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