Terreno Realty Corporation (NYSE: TRNO), a prominent acquirer, owner, and operator of industrial real estate in major U.S. coastal markets, has announced its acquisition of an industrial property in Long Island City, Queens, New York. The transaction, completed on December 5, 2024, came with a purchase price of approximately $7.6 million.
The newly acquired property is strategically located at 48-29 31st Place, adjacent to the Queens Midtown/Long Island Expressway (I-495), and is just one mile from the Queens Midtown Tunnel. This prime location offers excellent connectivity to Manhattan and the greater New York City area, making it an ideal site for industrial and distribution operations.
Property Details
The Long Island City property includes a 17,000-square-foot industrial distribution building situated on 0.4 acres of land. Key features of the facility include:
- Loading Accessibility: One dock-high position, one van-level position, and one grade-level position.
- Parking: Space for seven vehicles.
- Current Status: The property is currently vacant, allowing for immediate customization or lease-up by future tenants.
The company has reported an estimated stabilized capitalization rate (cap rate) of 5.7% for the property. This metric is calculated by dividing the annualized cash basis net operating income (stabilized at a typical market occupancy of 95%) by the total acquisition cost.
The total acquisition cost encompasses several factors beyond the initial purchase price. It includes adjustments for marking assumed debt to market value, buyer’s due diligence and closing costs, and anticipated capital expenditures and leasing costs required to bring the property to full stabilization.
Strategic Benefits
The acquisition aligns with Terreno Realty Corporation’s strategy of targeting industrial real estate in key coastal markets with robust demand for distribution and logistics infrastructure. Long Island City, with its proximity to Manhattan and major transportation routes, continues to grow as a vital hub for last-mile delivery and industrial activities.
The property’s location near I-495 provides access to the Queens Midtown Tunnel, allowing swift transportation to and from Manhattan, which is particularly critical for businesses requiring rapid logistics solutions. Additionally, the vacant status of the property offers Terreno flexibility to secure tenants or modify the space to align with market needs.
About Terreno Realty Corporation
Terreno Realty Corporation specializes in acquiring, owning, and managing industrial properties across six key coastal markets in the United States:
- New York City/Northern New Jersey
- Los Angeles
- Miami
- San Francisco Bay Area
- Seattle
- Washington, D.C.
The company focuses on strategically located properties with strong potential for rental income growth, tenant demand, and high connectivity to major transportation networks. Terreno’s portfolio is characterized by modern industrial facilities that cater to the evolving needs of e-commerce, logistics, and distribution sectors.
This acquisition is yet another example of Terreno Realty’s commitment to expanding its footprint in high-demand urban markets, further solidifying its position as a leader in industrial real estate.
By targeting industrial hubs such as Long Island City, the company continues to capitalize on the surging demand for well-located industrial spaces, driven by the growth of e-commerce and the need for efficient supply chain solutions.
