Terreno Realty Invests $365M in Major Coastal Industrial Properties Across the US

Bellevue, WA-based Terreno Realty Corporation, a prominent player in the industrial real estate sector, recently announced the acquisition of a substantial portfolio of industrial properties. The company specializes in acquiring, owning, and operating industrial real estate in key coastal U.S. markets.

Acquisition Details

The acquisition encompasses a diverse range of properties located in strategic locations including New York City, Northern New Jersey, the San Francisco Bay Area, and Los Angeles. The seller remains undisclosed, but the transaction reflects a significant investment totaling approximately $364.5 million.

Portfolio Overview

The acquired portfolio comprises 28 buildings, boasting a combined area of approximately 1.2 million square feet. Impressively, these properties are currently leased to 70 tenants, indicating strong occupancy rates. At the time of acquisition, the portfolio boasts an in-place capitalization rate (cap rate) of 4.3%. Moreover, the estimated stabilized cap rate is projected to reach 5.0%. Adjusting for today's market rents, the estimated stabilized cap rate is even higher at 5.8%, underscoring the potential for future growth and value creation.

Financial Advisory Role

Goldman Sachs & Co. LLC played a pivotal role in facilitating this acquisition, serving as the financial advisor to Terreno Realty Corporation. This partnership highlights the importance of strategic financial guidance in executing such significant transactions within the real estate sector.