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Terreno Realty Continues Acquisition Spree With Buyout in Santa Ana

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Key Takeaways

  • TRNO paid $49.5M for a 134K-sq-ft industrial site in Santa Ana with a 5.7% stabilized cap rate.
  • The site is fully leased to a major home improvement retailer and sits on 12.1 acres by I-405.
  • TRNO is reshaping its portfolio, selling $114.5M in assets and targeting top U.S. coastal markets.

Terreno Realty (TRNO - Free Report) has announced the purchase of an industrial property in Santa Ana, CA, for around $49.5 million, continuing its acquisition spree. The transaction marks an estimated stabilized cap rate of 5.7%.

Last week, TRNO acquired an industrial property in Long Island City, Queens, NY, for $16 million. The company has been actively restructuring its portfolio by disposing of non-core assets and opting for value-accretive investments. Such efforts will aid its long-term revenue growth.

The recently acquired property is located at 3500 West MacArthur Boulevard, comprising one industrial distribution building containing roughly 134,000 square feet on 12.1 acres of industrial-zoned land. It is 100% leased to a major home improvement retailer and is operational as a retail location. Equipped with seven dock-high and three grade-level loading positions at an advantageous location adjacent to I-405 in Orange County, the property is likely to lure tenants, aiding revenue growth.

TRNO’s Portfolio-Rebalancing Efforts

TRNO follows a disciplined capital-recycling strategy. In early June 2025, 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.

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 issues remain concerns.

Shares of this Zacks Rank #3 (Hold) company have gained 5.5% in the past month compared with the industry’s rise of 2.2%.

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Stocks to Consider

Some better-ranked stocks from the REIT sector are VICI Properties (VICI - 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 VICI Properties’ 2025 FFO per share is pegged at $2.35, up 3.98% year over year.

The Zacks Consensus Estimate for W.P. Carey’s2025 FFO per share stands at $4.88, up 3.83% year over year.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.


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