Terreno Realty Expands Portfolio With Property Buyout in Queens

Core Insights - Terreno Realty (TRNO) has acquired an industrial property in Long Island City, Queens, NY, for $16 million, aligning with its acquisition-driven growth strategy, with an estimated stabilized cap rate of 3.9% [1][8] Group 1: Property Acquisition Details - The acquired property is located at 11-40 Borden Avenue, comprising one industrial distribution building of approximately 36,000 square feet on 1 acre, fully leased to an insulation distributor until May 2028 [2][8] - The advantageous location near the Queens-Midtown Tunnel and Pulaski Bridge is expected to attract tenants, making this acquisition strategically beneficial [2][8] Group 2: Portfolio Growth Strategy - TRNO is actively restructuring its portfolio by selling non-core assets and acquiring value-accretive investments, which is expected to support long-term revenue growth [3] - Recently, TRNO acquired another industrial property in Los Angeles, CA, for around $10 million, and sold two properties for a total of approximately $114.5 million [3] - As of May 6, 2025, TRNO has acquisitions worth around $49 million under contract and nearly $75.8 million under letters of intent [3] Group 3: Development and Future Prospects - As of March 31, 2025, TRNO has five properties under development or redevelopment, which will consist of eight buildings totaling around 0.8 million square feet, with 48% pre-leased [4] - The company holds approximately 22.4 acres of land for future developments, with an estimated investment value of around $392.8 million [4] - TRNO is positioned to enhance its portfolio across six major coastal U.S. markets, which show strong demographic trends and healthy demand for industrial real estate [5] Group 4: Market Performance - TRNO shares have increased by 4.5% over the past month, outperforming the industry average rise of 2.6% [6]