Yahoo Finance Terreno Realty Sells Industrial Property in Miami for $4.3M
Terreno Realty Corporation TRNO recently announced that it sold an industrial property in Miami, FL, on Nov 21, 2018. The property has been sold for approximately $4.3 million.
The property at 7500 NW 26th Street consists of a light industrial building, spanning around 25,000 square feet on a 1.2-acre land. It is 100% leased to a single tenant on a short-term basis. The company had shelled out nearly $3.2 million for the purchase of this property on Sep 25, 2012.
Through this sale, Terreno recognized an unleveraged internal rate of return of approximately 14.3%. Notably, the company’s efforts to realize value through asset sale will enhance its portfolio, while sale proceeds can be redeployed for accretive acquisitions.
Terreno currently carries a Zacks Rank #3 (Hold). Encouragingly, over the past three months, shares of the company have outperformed the industry. While the stock has gained 2.1%, the industry has incurred loss of 2.4% during this period.
In fact, the company is focusing on an acquisition-driven growth strategy. It is specifically aimed at owning flexible and functional industrial assets at in-fill locations which can be redeveloped to accommodate single, as well as multiple tenants. Terreno has also been fortifying its portfolio in six major port cities that display solid demographic trends and have strong barriers to entry, which limit new supply.
Moreover, earlier this November, the company purchased industrial property in Santa Fe Springs, CA, for approximately $6.4 million. The buyout comprises a 2.3-acre improved land parcel which is fully leased to two tenants. With such efforts, Terreno looks poised to benefit from robust market fundamentals in the industrial real estate segment.
Notably, high-consumer spending, e-commerce boom, as well as healthy manufacturing environment amid recovering economy and job market are spurring demand for the industrial real estate category. This elevated demand is expected to significantly drive performance of Terreno, as well as other industrial REITs like Duke Realty Corp. DRE, Prologis PLD and Liberty Property Trust LPT.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Duke Realty Corporation (DRE) : Free Stock Analysis Report
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