Terreno Realty Corporation Acquires Property in Long Island City Queens, NY for $7.6 Million

Rhea-AI Summary

Terreno Realty (NYSE:TRNO) has acquired an industrial property in Long Island City Queens, New York for $7.6 million. The property features a 17,000-square-foot industrial distribution building situated on 0.4 acres at 48-29 31st Place. Located adjacent to I-495 and approximately one mile from the Queens Midtown Tunnel, the facility includes one dock-high, one van-level, and one grade-level loading positions, along with parking for seven cars. The property is currently vacant with an estimated stabilized cap rate of 5.7%.

Positive

• Strategic location near major transportation routes (I-495 and Queens Midtown Tunnel)
• Property acquisition expands presence in key NYC market
• Multiple loading positions enhance operational flexibility

Negative

• Property currently vacant, requiring leasing efforts
• Relatively low estimated stabilized cap rate of 5.7%
• Additional capital expenditure needed for stabilization

Insights

Real Estate Analyst

The $7.6 million acquisition in Long Island City represents a strategic expansion in a prime NYC logistics location. The property's proximity to I-495 and the Queens Midtown Tunnel offers excellent last-mile delivery access to Manhattan and broader NYC metro area. While relatively small at 17,000 square feet, the 5.7% stabilized cap rate reflects the premium location and potential for strong rental growth. The current vacancy presents near-term income drag but also opportunity for value-add through leasing. Long Island City's industrial market has seen robust demand from e-commerce and logistics tenants, with supply due to residential/mixed-use conversions. The acquisition aligns with Terreno's coastal market strategy, strengthening their NYC portfolio in an infill location where land constraints support long-term appreciation.

Market Research Analyst

This acquisition, though modest in size, showcases Terreno's disciplined approach to expanding in supply-constrained urban markets. Long Island City's industrial properties command premium rents due to excellent transportation links and proximity to Manhattan's 8.8M consumers. The property's 5.7% cap rate, while seemingly compressed, is justified by the market's fundamentals and growth potential. The location's last-mile delivery advantages and multi-modal transportation access (highway, tunnel) position it well for logistics tenants. With just 0.4 acres, the land-to-building ratio reflects the urban infill nature of the asset, typical for this submarket where developable industrial land is scarce and increasingly valuable.

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 an industrial property located in Long Island City Queens, New York on December 5, 2024 for a purchase price of approximately $7.6 million.

The property consists of one industrial distribution building containing approximately 17,000 square feet on 0.4 acres. The property is at 48-29 31st Place, adjacent to I-495 (Queens Midtown/Long Island Expressway) approximately one mile from the Queens Midtown Tunnel, provides one dock-high, one van-level and one grade-level loading positions and parking for seven cars. The property is vacant and the estimated stabilized cap rate is 5.7%.

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/20241203208121/en/

Jaime Cannon

415-655-4580

Source: Terreno Realty Corporation

FAQ

How much did Terreno Realty (TRNO) pay for the Long Island City Queens property?

Terreno Realty paid approximately $7.6 million for the Long Island City Queens property.

What is the size of TRNO's newly acquired Long Island City property?

The property consists of a 17,000-square-foot industrial distribution building on 0.4 acres.

What is the estimated stabilized cap rate for TRNO's new Long Island City acquisition?

The estimated stabilized cap rate for the property is 5.7%.

Where is TRNO's new Long Island City property located?

The property is located at 48-29 31st Place, adjacent to I-495 and approximately one mile from the Queens Midtown Tunnel.