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Terreno Sells Industrial Asset for $15M in Annapolis Junction

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Terreno Realty Corporation (TRNO - Free Report) recently sold an industrial property in Annapolis Junction, MD, for $15 million. The company had acquired the property, comprising one industrial R&D building containing around 97,000 square feet on 6.3 acres, for around $13.8 million in November 2014, and the estimated unleveraged internal rate of return generated by the investment was about 7.6%.

The company is focused on an acquisition-driven growth strategy. It targets functional buildings at in-fill locations, which enjoy high-population densities and are located near high volume-distribution points. Amid these, Terreno’s efforts to shed non-core properties will enhance its portfolio and provide capital for strategic acquisitions.

Through such efforts, the company is well poised to fortify its portfolio in six major port cities — Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. — which display solid demographic trends and witness healthy demand for industrial real estates.

The company recently completed the acquisition of a Puyallup, WA-located industrial property. It has shelled out nearly $6.7 million for this purchase. The industrial distribution building offers around 41,000 square feet of space on 2.3 acres. This property, situated at 917 Valley Avenue NW, is less than four miles from the Port of Tacoma.

Terreno has acquired another industrial property in East Rutherford, NJ, for $12 million. The industrial distribution building is less than two miles west of the Meadowlands Sports Complex and Exit 16W of the New Jersey Turnpike.

Notably, the e-commerce boom, resilient consumer sentiment, low unemployment level and rising wages are playing key roles in keeping up the industrial and logistics sector’s healthy performance. Companies are making immense efforts to improve supply-chain efficiencies, spurring demand for logistics infrastructure and efficient distribution networks.

This is opening up ample opportunities for Terreno Realty and other industrial REITs, like Duke Realty Corp. , Prologis (PLD - Free Report) and Rexford Industrial Realty, Inc. (REXR - Free Report) . Nevertheless, rising supply and protectionist trade policies have the capability to mar the companies’ growth tempo to some extent.

Currently, Terreno Realty carries a Zacks Rank #3 (Hold). Its shares have surged 50.8% compared with the industry’s rise of 22.5%, so far in the year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.



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