Terreno Realty Corporation Announces Development Completion in Hialeah, FL
Terreno Realty (NYSE:TRNO) has completed the development and stabilization of Countyline Corporate Park Phase IV Building 40 in Hialeah, Florida, ahead of the previously expected Q4 2024 timeline. The 186,000 square foot industrial distribution building, featuring 60 dock-high and two grade-level loading positions, is fully leased to four tenants. The total investment for Building 40 is $43.8 million, with an estimated stabilized cap rate of 6.3%. Countyline Phase IV, part of a 121-acre project, is set to contain ten LEED-certified buildings totaling 2.2 million square feet upon its completion in 2027, with a projected total investment of $511.5 million. Terreno Realty's combined Countyline Corporate Park Phases III and IV will comprise 17 buildings and 3.5 million square feet of industrial space.
- Completion ahead of schedule for Countyline Corporate Park Phase IV Building 40 in Hialeah, FL.
- Building 40 is 100% leased to four tenants, ensuring immediate revenue generation.
- Building 40 spans 186,000 square feet with an estimated stabilized cap rate of 6.3%.
- Total investment for Building 40 is $43.8 million, indicating a substantial asset addition.
- Countyline Phase IV will consist of ten LEED-certified buildings by 2027, enhancing sustainability and market appeal.
- Combined Phases III and IV will total 3.5 million square feet of industrial space, bolstering Terreno Realty's portfolio.
- High total expected investment of $511.5 million for Countyline Phase IV, posing potential financial risks.
- Long-term project timeline with completion not expected until 2027, delaying full revenue realization.
- Market dependency on achieving a stabilized cap rate of 6.3% may introduce uncertainty.
The completion of the Countyline Corporate Park Phase IV Building 40 is notable because it signals that Terreno Realty Corporation is on track with its development schedules, which is often a sign of effective project management and demand for their properties. The building's full lease by four tenants ahead of the expected stabilization date suggests strong demand for high-quality industrial space in Hialeah, FL. This demand is likely influenced by the building's prime location adjacent to major transportation routes like Florida’s Turnpike and the southern terminus of I-75.
The investment of
From a market perspective, the rapid leasing and premium location of this facility underscore the ongoing trend towards increased demand for industrial real estate, especially in logistics hubs near major transportation networks. This trend is driven by the growth in e-commerce and the need for efficient distribution centers. The LEED certification is an additional attractive feature, aligning with increasing corporate sustainability goals and possibly offering lower operating costs due to energy efficiencies.
Retail investors should note the scale of the overall development project, which, when completed, will add significant capacity to Terreno Realty Corporation's portfolio. The firm's ability to attract tenants ahead of schedule may suggest robust market fundamentals in the region and an effective leasing strategy.
-Countyline Corporate Park Phase IV Building 40
Countyline Corporate Park Phase IV consists of a 121-acre project entitled for 2.2 million square feet of industrial distribution buildings in Miami’s Countyline Corporate Park (“Countyline”), immediately adjacent to Terreno Realty Corporation’s seven buildings within Countyline (Countyline Corporate Park Phase III). Countyline is a landfill redevelopment adjacent to Florida’s Turnpike and the southern terminus of I-75 located at the intersection of NW 170th Street and NW 107th Avenue. At expected completion in 2027, Countyline Phase IV is expected to contain ten LEED-certified industrial distribution buildings totaling approximately 2.2 million square feet providing 660 dock-high and 22 grade-level loading positions and parking for 1,875 cars for a total expected investment of approximately
Taken together, Terreno Realty Corporation’s Countyline Corporate Park Phase III and IV will contain 17 industrial distribution buildings and 3.5 million square feet.
Estimated stabilized cap rates are calculated as annualized cash basis net operating income stabilized to market occupancy (generally
Terreno Realty Corporation acquires, owns and operates industrial real estate in six major coastal
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.
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Jaime Cannon
415-655-4580
Source: Terreno Realty Corporation
FAQ
What is the significance of Terreno Realty's completion of Building 40 in Hialeah, FL?
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