Terreno Realty Corporation Acquires Property in Doral, FL for $195.6 Million

Rhea-AI Summary

Terreno Realty (NYSE:TRNO) has acquired Terreno Doral Air Logistics, an industrial property in Doral, Florida for $195.6 million. The property features three 36-foot clear height rear-load industrial distribution buildings spanning approximately 495,000 square feet on 23.4 acres. Located at 7725-7785 NW 41st Street, the facility is strategically positioned near major transportation routes, including the Palmetto Expressway and Miami International Airport.

The property includes 110 dock-high and six grade-level loading positions, with parking for 528 cars (including 11 EV charging positions). Currently 76% leased to six tenants, the property has an estimated stabilized cap rate of 4.6%.

Positive

• Strategic location near major transportation routes and Miami International Airport
• Large-scale property acquisition adding 495,000 square feet to portfolio
• Modern facilities with 36-foot clear height and extensive loading capabilities
• 76% current occupancy with potential for additional leasing revenue

Negative

• Relatively low cap rate of 4.6% indicating potentially lower immediate returns
• 24% vacancy rate requiring additional leasing efforts and associated costs
• Significant capital investment of $195.6 million

Insights

Real Estate Investment Analyst

This $195.6 million acquisition in Doral represents a strategic expansion in Miami's industrial market. The property's location near Miami International Airport and major expressways positions it as a prime last-mile logistics hub. The 4.6% stabilized cap rate, while seemingly low, aligns with premium industrial assets in core markets, reflecting the property's quality and location advantages.

The current 76% occupancy rate presents immediate upside potential through lease-up opportunities in a market where industrial vacancy rates are historically low. The property's modern specifications, including 36-foot clear heights and extensive loading capabilities, match current tenant demands for e-commerce and air cargo operations. With 495,000 square feet spread across three buildings, the diversified tenant base reduces single-tenant risk while maintaining operational efficiency.

The inclusion of EV charging stations and strategic positioning near major transportation arteries enhances the property's long-term value proposition, particularly as Miami continues to emerge as a key logistics hub for Latin American trade.

Logistics Operations Expert

The facility's specifications are particularly compelling from an operational standpoint. With 110 dock-high doors and 6 grade-level loading positions, this property offers superior throughput capacity essential for modern distribution operations. The 36-foot clear height enables maximum cubic storage efficiency, while the parking capacity for 528 vehicles supports high-volume fulfillment operations.

The property's location one mile from the MIA Cargo Viaduct creates a significant competitive advantage for air freight operators. The proximity to Miami International Airport positions tenants to capitalize on time-sensitive cargo operations and the growing cross-border e-commerce market. The immediate access to the Palmetto Expressway facilitates efficient ground transportation, important for last-mile delivery operations serving Miami's dense urban population.

BELLEVUE, Wash.--(BUSINESS WIRE)-- Terreno Realty Corporation (NYSE:TRNO), an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, acquired Terreno Doral Air Logistics, an industrial property located in Doral, Florida on December 27, 2024 for a purchase price of approximately $195.6 million.

The property consists of three 36-foot clear height rear-load industrial distribution buildings containing approximately 495,000 square feet on 23.4 acres. The property is at 7725-7785 NW 41st Street, immediately adjacent to the Palmetto Expressway and approximately one mile from the MIA Cargo Viaduct and two miles from the Dolphin Expressway and Miami International Airport, provides 110 dock-high and six grade-level loading positions and parking for 528 cars (including 11 EV charging positions). The property is 76% leased to six tenants and the estimated stabilized cap rate is 4.6%.

Estimated stabilized cap rates are calculated as annualized cash basis net operating income stabilized to market occupancy (generally 95%) divided by total acquisition cost. Total acquisition cost includes the initial purchase price, the effects of marking assumed debt to market, buyer’s due diligence and closing costs, estimated near-term capital expenditures and leasing costs necessary to achieve stabilization.

Terreno Realty Corporation acquires, owns and operates industrial real estate in six major coastal U.S. markets: New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle and Washington, D.C.

Additional information about Terreno Realty Corporation is available on the company’s web site at www.terreno.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. We caution investors that forward-looking statements are based on management’s beliefs and on assumptions made by, and information currently available to, management. When used, the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “result,” “should,” “will,” “seek,” “target,” “see,” “likely,” “position,” “opportunity,” “outlook,” “potential,” “enthusiastic,” “future” and similar expressions which do not relate solely to historical matters are intended to identify forward-looking statements. These statements are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control, including risks related to our ability to meet our estimated forecasts related to stabilized cap rates, and those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2023 and our other public filings. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected. We expressly disclaim any responsibility to update our forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Accordingly, investors should use caution in relying on past forward-looking statements, which are based on results and trends at the time they are made, to anticipate future results or trends.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241227724655/en/

Jaime Cannon

415-655-4580

Source: Terreno Realty Corporation

FAQ

What is the purchase price and size of TRNO's new Doral property acquisition?

Terreno Realty acquired the Doral property for $195.6 million, consisting of three buildings totaling approximately 495,000 square feet on 23.4 acres.

What is the current occupancy rate and cap rate for TRNO's Doral acquisition?

The property is 76% leased to six tenants with an estimated stabilized cap rate of 4.6%.

Where is TRNO's new Doral property located and what are its key features?

The property is located at 7725-7785 NW 41st Street in Doral, Florida, featuring 36-foot clear height buildings, 110 dock-high and six grade-level loading positions, and parking for 528 cars including 11 EV charging positions.

How close is TRNO's new Doral property to Miami International Airport?

The property is approximately two miles from Miami International Airport and one mile from the MIA Cargo Viaduct.

What transportation infrastructure surrounds TRNO's new Doral acquisition?

The property is immediately adjacent to the Palmetto Expressway and near the MIA Cargo Viaduct and Dolphin Expressway, providing excellent transportation access.