In a recent announcement, San Francisco-based
Terreno Realty Corporation
) revealed that during the second quarter, the company purchased
5 industrial properties stretching over 869,000 square feet. In
total, these 5 properties consist of 11 buildings and the company
shelled out approximately $61.6 million for these acquisitions.
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With these acquisitions, Terreno Realty's owned buildings count
reaches 80. Spanning 6.1 million square feet, these properties
were approximately 89.1% occupied by 139 tenants. Notably, the
acquisition of 333,000 square feet of vacant space during the
quarter has lowered the occupancy from 93.3% at Mar 31, 2013 and
91.3% at Jun 30, 2012. Going forward, we expect these
acquisitions by Terreno Realty to aid top-line improvement and
benefit from a diversified tenant base.
Among the 5 properties that were acquired by this real estate
investment trust (REIT), the first one is situated at 240
Littlefield in South San Francisco, CA - an 85,000 square feet
industrial building that was acquired vacant for around $8.4
million. The second one is located at 101st Road - a 52,500
square feet industrial building and a neighboring improved 2.28
acre lot in Medley, FL purchased for about $6.0 million with both
the building as well as the improved lot being fully leased.
The third property - Americas Gateway - comprised 6 buildings in
Doral, FL. The company paid $23.7 million for this portfolio that
spans 307,000 square feet. These multi-tenant distribution
buildings were 70% occupied at the time of purchase.
The fourth is Route 100 in Elkridge, MD, acquired for roughly
$16.7 million. The property comprises two buildings that span
348,500 square feet. The two multi-tenant industrial distribution
buildings were 64% leased at acquisition.
The fifth property is situated at 1 Dodge Drive in West Caldwell,
NJ. The company shelled out about $6.8 million for this purchase.
Spanning 93,000 square feet this multi-tenant industrial building
is currently 100% leased.
Terreno Realty owns and operates industrial real estate
properties mainly in 6 major coastal markets of the U.S. - the
high barriers-to-entry markets of Los Angeles, Northern New
Jersey, San Francisco Bay Area, Seattle, Miami and Washington
D.C./Baltimore. Recently, Terreno Realty has been active in
capitalizing on opportunities to strengthen its foothold in these
areas and opted for acquisitions as well as lease extension and
Terreno Realty currently holds a Zacks Rank #1 (Strong Buy).
Other better performing REITs include
Sunstone Hotel Investors, Inc.
Winthrop Realty Trust
W. P. Carey Inc.
). All these stocks carry a Zacks Rank #1 (Strong Buy).