In a significant development, Terreno Realty Corporation TRNO announced the completion of the redevelopment of its property on South Main Street in Carson, CA. The aggregate cost of the redeveloped property is $39.2 million and is presently 100% leased.
The move is sync with the San Francisco, CA-based industrial real estate investment trust’s (“REIT”) efforts in building a portfolio of premium properties in its target markets. Also, the property’s fully-leased status reflects the solid demand for the company’s properties.
Notably, the renovated property now includes a newly constructed front-load industrial distribution building, having around 210,000 square feet of space as well as a refurbished office building, comprising approximately 34,000 square feet of area.
Earlier, the company had revealed the execution of a ten-year lease with a provider of worldwide freight forwarding services. This lease involved the whole office building as well as a part of the warehouse, spanning a total space of around 180,000 square feet. This tenant would move and expand from a current facility of Terreno Realty.
For the rest 64,000 square feet of space, the company has declared a lease to an importer and distributor of down products. This lease starts in Sep 2016 and is slated for an expiry in Aug 2021.
Terreno Realty’s last acquisition was an industrial property in Somerset, NJ, for approximately $9.1 million, in Sep 2016. We expect the buyout and redevelopment efforts to boost the company’s bottom line.
This REIT actively focuses on leveraging the improving fundamentals of industrial markets, bolstering its business in key coastal U.S. markets like Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, D.C./Baltimore.
Terreno Realty currently has a Zacks Rank #3 (Hold). A better-ranked stock in the REIT industry is InfraREIT, Inc. HIFR, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Also, investors can consider stocks like Mack-Cali Realty Corp. CLI and HCP Inc. HCP, both carrying the Zacks Rank #2 (Buy).
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