Terreno Realty Corporation Announces Development Start in Hialeah, FL

Rhea-AI Summary

Terreno Realty (NYSE:TRNO) has started construction of Building 34 at Countyline Corporate Park Phase IV in Hialeah, Florida. The 220,000 square foot industrial distribution building is 70% pre-leased to a cruise ship industry supplier. The project, expected to complete in Q3 2025, requires a $55.9 million investment with an estimated 5.7% cap rate. Building 34 is part of a larger 121-acre development project that will feature 2.2 million square feet of industrial space across ten LEED-certified buildings, with a total investment of approximately $511.5 million expected to complete in 2027.

Positive

• 70% pre-lease secured before construction with commitment until 2033
• Part of larger development expanding portfolio by 2.2 million square feet
• Strategic location near Florida's Turnpike and I-75
• LEED certification pursuit demonstrates environmental commitment

Negative

• Large capital expenditure of $511.5 million required through 2027
• Relatively low estimated stabilized cap rate of 5.7%

Insights

Real Estate Investment Analyst

This development announcement signals significant expansion in Miami's industrial market. The $55.9 million Building 34 project, with 70% pre-lease commitment and a 5.7% cap rate, demonstrates strong market demand. The strategic location near major transportation routes and the cruise industry tenant indicates solid income potential. The broader $511.5 million Countyline Corporate Park Phase IV development showcases Terreno's substantial market position and long-term growth strategy. The LEED certification pursuit adds value through sustainability credentials, potentially attracting premium tenants and reducing operating costs. The pre-lease to a cruise industry supplier through 2033 provides stable, long-term cash flow visibility, though the relatively modest cap rate reflects current market pricing dynamics.

-Building 34 70% pre-leased

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, announced today that it has commenced construction of Countyline Corporate Park Phase IV Building 34 in Hialeah, Florida. Building 34 of Terreno Realty Corporation’s Countyline Corporate Park is a 220,000 square foot 36-foot clear height rear-load industrial distribution building on 13.0 acres with 76 dock-high and two grade-level loading positions and parking for 188 cars. Building 34 has been 70% pre-leased to a cruise ship industry provider of non-perishable food items and food service supplies commencing with building completion and tenant build-out, expected to be in the third quarter of 2025, and expiring February 2033. Building 34 is expected to achieve LEED certification, the total expected investment is $55.9 million and the estimated stabilized cap rate is 5.7%.

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 Corporate Park 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 $511.5 million.

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 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: Northern New Jersey/New York City; 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/20241016959756/en/

Jaime Cannon

415-655-4580

Source: Terreno Realty Corporation

FAQ

What is the total investment for Terreno Realty's Building 34 in Hialeah, FL?

The total expected investment for Building 34 is $55.9 million.

When will Terreno Realty's Building 34 in Countyline Corporate Park be completed?

Building 34 is expected to be completed in the third quarter of 2025.

How much of Building 34 has Terreno Realty (TRNO) pre-leased?

70% of Building 34 has been pre-leased to a cruise ship industry provider of non-perishable food items and food service supplies.

What is the total square footage of Terreno Realty's Countyline Corporate Park Phase IV project?

Countyline Corporate Park Phase IV will contain approximately 2.2 million square feet of industrial distribution space across ten buildings.