Terreno Realty Expands With M NoVa Acquisition

Terreno Realty Expands With $84M NoVa Acquisition

Desktop/Tablet Image


The 1855 W. 139th St. buildings also feature 20,000 square foot showroom. Image courtesy of CommercialEdge

In January, Terreno Realty has begun a $64 million redevelopment of 1855 W. 139th St., a 231,000-square-foot industrial property in Gardena, Calif. Image courtesy of CommercialEdge

Terreno Realty Corp. has further expanded its portfolio around the Washington, D.C., area with its $84.3 million purchase of the Fleet Industrial Park, a four-building, 357,000-square-foot logistics campus in Alexandria, Va. According to CommercialEdge information, the seller was the State Teachers Retirement System of Ohio, which purchased the property back in 1993.

In addition to the asset value, the price covered all the property’s assumed debt to market, the buyer’s due diligence and closing costs, near-term capital expenditures and associated leasing costs, as part of a larger effort to stabilize it.

The Fleet changes hands

The acquisition brings the publicly traded investor’s portfolio around the nation’s capital to 27 buildings totaling more than 2.1 million square feet. In addition to the Fleet Industrial Park, the firm also owns two properties around Alexandria totaling 227,043 square feet. The firm is also expanding in the Los Angeles area, having recently begun its redevelopment of a 231,000-square-foot industrial property in Gardena, Calif.


READ ALSO: Q&A: How Will the Manufacturing Investment Boom Impact Industrial CRE?


CommercialEdge shows that the Fleet Industrial Park was built in 1977 over 19.1 acres, located at 6584-6674 Fleet Drive. The campus’ four buildings collectively include 67 dock-high and 38 grade-level loading doors, in addition to 580 shared parking spots. Cushman & Wakefield currently handles leasing at the fully occupied property, which has an estimated stabilized cap rate of 5.3 percent. All 21 leases expire by 2031.

Located roughly one mile to the east of an onramp to the Interstate 395, the park also provides easy access to the intersection of I-95/395 and I-495. Old Town Alexandria is 6 miles to the northeast, while Washington, D.C., is an additional 5 miles in the same direction.

A mixed bag along the Potomac

A JLL industrial report from the first quarter of this year found that metro D.C.’s net absorption, project deliveries and asking rents are all up year-over-year, despite CommercialEdge reporting a more than 26 percent decline in transaction volumes from 2022 through 2023. According to the JLL report, 2023 was a five-year high for new supply, with roughly 2.5 million square feet of space coming online.

Still, the area in and around the nation’s capital has seen no shortage of activity within existing properties. Last month, DHL eCommerce entered a full-building lease at Building B of Redstone Industrial, a 138,000-square-foot facility in Manassas, Va. Back in February, Finmarc Management parted ways with 8000 Grainger Court, an 88,000-square-foot flex facility in Springfield, Va. The firm sold the facility to C2 Imaging for $15.9 million.



Source link

Desktop/Tablet Image
Desktop/Tablet Image