Terreno Realty Corporation Acquires Strategic Industrial Property in Hyattsville, Maryland for $50 Million
Terreno Realty Corporation, a leading acquirer, owner, and operator of industrial real estate across six major coastal U.S. markets, has announced the acquisition of a prime industrial property in Hyattsville, Maryland. The purchase, finalized on December 4, 2025, was completed for a total consideration of approximately $50.0 million, further strengthening the company’s presence in the Washington, D.C. metropolitan area.
The newly acquired property is a rear-load industrial distribution building encompassing roughly 180,000 square feet, situated on a 14.1-acre site. Strategically located at 2300 Craftsman Circle, the site sits adjacent to the intersection of the Baltimore-Washington Parkway and U.S. Route 50, approximately one mile from Washington, D.C. This location offers excellent connectivity to the region’s transportation network, enabling efficient logistics and distribution operations.
Designed to support modern industrial operations, the building features 45 dock-high loading positions, one grade-level loading position, and parking facilities for up to 156 vehicles. Currently, the building is delivered as shell complete only, giving Terreno Realty Corporation the flexibility to customize interior finishes to meet market demands and tenant requirements. The company plans to permit and construct these interior improvements, with the build-out anticipated to be completed by early 2027. The total projected investment in the property, including acquisition and improvements, is expected to reach $57.6 million. Upon stabilization, the property is projected to achieve an estimated cap rate of 5.2%.
Cap rate projections, including Terreno’s estimated stabilized cap rate, are calculated based on the annualized cash-basis net operating income normalized to market occupancy, which is generally assumed to be 95%. Total acquisition costs considered in the calculation include not only the purchase price but also the impact of marking assumed debt to market, buyer’s due diligence and closing expenses, as well as anticipated near-term capital expenditures and leasing costs required to bring the property to stabilization. This methodology reflects Terreno’s disciplined investment approach and its focus on achieving long-term value creation for shareholders.
The acquisition aligns with Terreno Realty Corporation’s strategy of expanding its portfolio in key coastal markets, which include New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle, and Washington, D.C. By targeting industrial properties in high-demand areas with strong transportation access, Terreno seeks to provide modern, well-located facilities that meet the needs of e-commerce, logistics, and distribution tenants.
This latest addition enhances Terreno’s footprint in the Washington, D.C. market, a region known for its limited industrial supply and robust demand driven by government contractors, logistics providers, and other industrial users. The Hyattsville property benefits from its proximity to major highways, offering tenants efficient access to regional and interstate distribution networks. Its substantial size, modern loading infrastructure, and flexible interior configuration make it well-suited for a wide range of industrial uses, from light manufacturing to distribution and fulfillment operations.
The planned interior improvements are part of Terreno’s value-add approach, allowing the company to enhance property functionality and appeal to prospective tenants. By delivering a tailored, modern industrial space, Terreno aims to achieve high occupancy rates and maximize the property’s long-term performance. The expected completion of interior finishes by early 2027 positions the property to meet market demand in a timely manner, further reinforcing Terreno’s strategy of acquiring assets with strong growth potential.
Terreno Realty Corporation’s acquisition of the Hyattsville property underscores its continued commitment to disciplined, strategic investment in high-barrier-to-entry markets. The company maintains a focus on industrial properties that offer stable income streams and opportunities for value creation through active asset management and targeted capital improvements.
With this acquisition, Terreno strengthens its diversified industrial portfolio, which provides investors with exposure to high-demand markets along the U.S. coasts. The company’s rigorous due diligence process, coupled with its operational expertise, ensures that each acquisition aligns with its broader investment objectives and long-term growth strategy.
Terreno Realty Corporation has built a reputation for acquiring, owning, and managing industrial properties in markets characterized by strong economic fundamentals, limited supply, and high barriers to entry. By focusing on these key coastal markets, the company leverages its market knowledge, operational capabilities, and strategic relationships to generate attractive risk-adjusted returns for its shareholders.
The Hyattsville acquisition represents the latest step in Terreno’s ongoing growth and portfolio expansion. It highlights the company’s ability to identify and secure high-quality industrial assets in strategic locations, while maintaining a disciplined approach to investment and capital deployment. As the industrial sector continues to benefit from evolving supply chain dynamics, e-commerce growth, and increasing demand for modern distribution facilities, Terreno’s strategic acquisitions position it to capitalize on these trends effectively.
The acquisition of the Hyattsville property reinforces Terreno Realty Corporation’s position as a leading industrial real estate owner and operator in six major coastal U.S. markets. The property’s strategic location, modern infrastructure, and planned enhancements provide a strong foundation for long-term growth, aligning with Terreno’s commitment to delivering value to its tenants, investors, and shareholders. With the anticipated completion of interior improvements by early 2027, the property is expected to contribute meaningfully to the company’s portfolio performance and further strengthen its presence in the Washington, D.C. industrial market.
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