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• Terreno Realty Corporation has acquired an industrial distribution property in Alexandria, Virginia, for USD 13 million.
• The asset includes a 50,000-square-foot industrial building spread across 2.8 acres and is strategically located near Interstate 95 and Interstate 495.
• The property is currently 77% leased to three tenants and features multiple loading positions and parking facilities.
• Terreno Realty expects the asset to achieve a stabilized cap rate of 5% after reaching market occupancy levels.
• The acquisition strengthens the company's industrial real estate portfolio in the Washington, D.C. region and aligns with its focus on high-demand urban logistics markets.
Terreno Realty Corporation has expanded its industrial real estate portfolio with the acquisition of an industrial distribution property in Alexandria, Virginia, for USD 13 million. The transaction further strengthens the company's presence in the Washington, D.C. metropolitan area, one of the key logistics and industrial markets in the United States.
The acquired property is located at 5751 General Washington Drive and consists of a 50,000-square-foot industrial distribution building situated on approximately 2.8 acres of land. The site benefits from its proximity to the intersection of Interstate 95 and Interstate 495, commonly known as the Capital Beltway, providing strong regional connectivity for logistics, warehousing and distribution operations.
The industrial facility is equipped with eight dock-high loading positions and one grade-level loading position, features that are important for freight handling and last-mile distribution activities. The property also includes parking space for 73 vehicles, supporting operational requirements for tenants and logistics users.
At the time of acquisition, the asset was 77% leased to three tenants. The existing occupancy provides an income-generating base for the property while also offering scope for future leasing activity and rental growth as occupancy moves closer to market levels.
Terreno Realty said the property is expected to achieve a stabilized capitalization rate of approximately 5%. The company calculates this figure based on annualized cash-basis net operating income adjusted to a market occupancy level of about 95%, divided by total acquisition costs. These costs include the purchase price, transaction-related expenses, due diligence costs, near-term capital expenditure requirements and leasing investments needed to stabilize the asset.
The acquisition is in line with Terreno Realty's broader strategy of investing in industrial and logistics properties located in infill urban markets where land supply is constrained and demand from warehouse, distribution and e-commerce operators remains strong. Such markets have continued to attract institutional investors due to limited development opportunities and long-term demand fundamentals.
Terreno Realty focuses on acquiring, owning and operating industrial real estate in several major coastal markets across the United States, including New York City and Northern New Jersey, Los Angeles, Miami, the San Francisco Bay Area, Seattle and Washington, D.C. The company's investment approach is centered on well-located industrial assets that can benefit from strong transportation connectivity and growing logistics demand.
The Alexandria acquisition adds another strategically located industrial property to the company's portfolio and reflects continued investor interest in logistics-focused real estate assets that support regional supply chains and urban distribution networks.
Source Reuters
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