Terreno Realty Expands Brooklyn Portfolio with $26.3M Waterfront Acquisition

Terreno Realty Expands Brooklyn Portfolio with $26.3M Waterfront Acquisition

Terreno Realty has added to its industrial footprint in New York City through the purchase of a waterfront warehouse in Red Hook, Brooklyn. The real estate investment trust paid $26.3 million for the 28,000-square-foot property located at 659 Court Street, according to a recent announcement.

The seller, LBA Properties, realized a significant gain on the asset, having acquired it for $7 million roughly 18 months ago. The facility, which sits along the East River, features 70 parking spaces and two loading bays. It is currently occupied by a tenant specializing in maritime goods and services. Including available air rights, the site offers 145,800 square feet of buildable space.

The history of ownership for the site has seen considerable valuation fluctuations. Prior to LBA’s ownership, Buckeye Partners held the asset, purchasing it in 2013 for $15.5 million. Property records indicate that Buckeye also paid $92.1 million in real property transfer taxes in late 2019.

This acquisition occurs amid robust activity in the U.S. industrial and logistics sector. CBRE Group, Inc. recently reported that leasing volume increased 11 percent year-over-year to reach 268.7 million square feet nationwide. The firm also noted that vacancy rates have contracted to 6.5 percent. CBRE is currently trading at $147.96, reflecting a decline of 2.34 percent from the previous close.

Representatives for the buyer and seller did not immediately provide further details on the transaction.

What to watch

• Future earnings releases from Terreno Realty regarding occupancy rates and rental income from the new Red Hook asset.
• Quarterly industrial market reports tracking vacancy levels and leasing velocity.

Source: original release