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Terreno Realty Buys New Jersey Assets - Analyst Blog

By: Zacks.com
Posted: 10/21/2013 6:00:00 PM
Referenced Stocks: CLDT;PKY;SOHO;TRNO

San Francisco-based Terreno Realty Corporation ( TRNO ) announced the acquisition of two industrial properties in Carlstadt, N.J. The company shelled out about $9.9 million for the purchase. Spanning 90,000 square feet across 3.2 acres, the two industrial buildings are currently 97% leased to 3 tenants.

The buildings are situated in the central Meadowlands submarket adjoining Highways 3 and 17 and close to Exit 16W of the New Jersey Turnpike. The property's estimated stabilized cap rate is 5.7%.

The acquisition is a strategic fit for Terreno Realty as it would help boost its strong tenant base. Moreover, it is expected to prove accretive to the company's earnings going forward.  

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/New York City; San Francisco Bay Area; Seattle; Miami; and Washington, D.C./Baltimore. Lately, Terreno Realty has been active in capitalizing on opportunities to strengthen its foothold in these areas and opted for acquisitions as well as lease deals.

Earlier this month, Terreno Realty disclosed the acquisition of an industrial property in East Hanover, NJ for approximately $20.0 million. Notably, the company acquired three industrial properties comprising five buildings spanning approximately 250,000 square feet for around $37.8 million during third-quarter 2013.  

Moreover, adding catalysts to its top line, earlier this month this industrial real estate investment trust (REIT) disclosed two lease deals at its industrial properties in Commerce, California and Elizabeth, NJ.

Specifically, the deal in Commerce is for a lease of 64,320 square feet of space to a regional grocer at Garfield Business Center that begins on Nov 1, 2013 and expires on Mar 31, 2019. The other deal in Elizabeth involves leasing of 75,000 square feet at its recently renovated industrial property. The deal, which was inked with a third-party logistics company, starts Oct 1, 2013 and expires Dec 31, 2018.

Terreno Realty currently holds a Zacks Rank #4 (Sell). However, other REITs that are performing well and deserve a look include Chatham Lodging Trust ( CLDT ), Parkway Properties Inc. ( PKY ) and Sotherly Hotels Inc. ( SOHO ). All these stocks carry a Zacks Rank #1 (Strong Buy).



CHATHAM LODGING (CLDT): Free Stock Analysis Report

PARKWAY PPTY (PKY): Free Stock Analysis Report

SOTHERLY HOTELS (SOHO): Get Free Report

TERRENO REALTY (TRNO): Free Stock Analysis Report

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