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Terreno Realty Sells Industrial Assets for $51.3M in Maryland
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Terreno Realty Corporation (TRNO - Free Report) recently sold three industrial properties in Maryland’s Baltimore/Washington Corridor, for $51.3 million. The company had acquired these properties at 7125 Troy Hill Drive in Elkridge, 7190 Parkway Drive in Hanover and 9070 Junction Drive in Annapolis Junction in 2012, 2014 and 2015, respectively for a total of $35.1 million.
The estimated unleveraged internal rate of return generated by the investments amounts to 10.9%.These properties are fully leased to multiple tenants. The Troy Hill property has been disposed for $9.3 million, the Parkway Drive asset for $25.3 million and Junction Drive property for $16.6 million.
Notably, Terreno 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, the company’s efforts to shed non-core properties will provide capital for strategic acquisitions.
Through such efforts, the company is well poised to fortify its portfolio in 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.
In May, Terreno completed the acquisition of another industrial property in Seattle, WA, for $5.6 million. The property is fully leased to one tenant through December 2021, the estimated stabilized cap rate being 4%. Moreover, in April, the company completed the acquisition of an industrial property in Kent, WA, for $4.5 million. This property is fully leased to one tenant on a month-to-month basis and the estimated stabilized cap rate is 5.7%.
Amid the e-commerce boom and supply-chain strategy transformations, demand for industrial real estate has been strong. In light of the coronavirus pandemic, warehouse operations have become more essential with increased e-commerce customers. Over the long term, apart from the fast adoption of e-commerce, the logistics real estate is expected to benefit from the likely increase in inventory levels post crisis. This will open up prospects for Terreno Realty and other industrial REITs like Duke Realty Corp. , Prologis (PLD - Free Report) and Rexford Industrial Realty, Inc. (REXR - Free Report) .
However, the pandemic’s adverse impact on the economy will likely thwart demand for space in the near term. Rent relief and deferrals are added concerns.
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
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Terreno Realty Sells Industrial Assets for $51.3M in Maryland
Terreno Realty Corporation (TRNO - Free Report) recently sold three industrial properties in Maryland’s Baltimore/Washington Corridor, for $51.3 million. The company had acquired these properties at 7125 Troy Hill Drive in Elkridge, 7190 Parkway Drive in Hanover and 9070 Junction Drive in Annapolis Junction in 2012, 2014 and 2015, respectively for a total of $35.1 million.
The estimated unleveraged internal rate of return generated by the investments amounts to 10.9%.These properties are fully leased to multiple tenants. The Troy Hill property has been disposed for $9.3 million, the Parkway Drive asset for $25.3 million and Junction Drive property for $16.6 million.
Notably, Terreno 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, the company’s efforts to shed non-core properties will provide capital for strategic acquisitions.
Through such efforts, the company is well poised to fortify its portfolio in 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.
In May, Terreno completed the acquisition of another industrial property in Seattle, WA, for $5.6 million. The property is fully leased to one tenant through December 2021, the estimated stabilized cap rate being 4%. Moreover, in April, the company completed the acquisition of an industrial property in Kent, WA, for $4.5 million. This property is fully leased to one tenant on a month-to-month basis and the estimated stabilized cap rate is 5.7%.
Amid the e-commerce boom and supply-chain strategy transformations, demand for industrial real estate has been strong. In light of the coronavirus pandemic, warehouse operations have become more essential with increased e-commerce customers. Over the long term, apart from the fast adoption of e-commerce, the logistics real estate is expected to benefit from the likely increase in inventory levels post crisis. This will open up prospects for Terreno Realty and other industrial REITs like Duke Realty Corp. , Prologis (PLD - Free Report) and Rexford Industrial Realty, Inc. (REXR - Free Report) .
However, the pandemic’s adverse impact on the economy will likely thwart demand for space in the near term. Rent relief and deferrals are added concerns.
Shares of this Zacks Rank #3 (Hold) company have increased 9.7%, over the past year, as against the 7.7% decline of its industry. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>