Terreno Realty Corporation Sells Union City Property for $16.9 Million

Terreno Realty Corporation (NYSE: TRNO), a prominent player in the industrial real estate sector, recently announced the sale of an industrial property located in Union City, California, for approximately $16.9 million. The property, which was acquired by Terreno Realty Corporation in 2015 for $7.4 million, generated an unleveraged internal rate of return of 13.0% for the investment.

The property consists of one industrial distribution building containing approximately 66,000 square feet on 3.0 acres, which was vacant at the time of sale. The strategic location of the property, adjacent to major transportation networks, contributed to its appeal and sale price. The transaction highlights Terreno Realty Corporation's ability to identify and capitalize on attractive investment opportunities in the industrial real estate sector.



Terreno Realty Corporation's investment strategy focuses on acquiring, owning, and operating industrial real estate in six major coastal U.S. markets. The company's portfolio consists of 299 buildings aggregating approximately 19.3 million square feet and 47 improved land parcels consisting of approximately 150.6 acres leased to 670 customers. The company's operating portfolio was 97.4% leased at December 31, 2024, demonstrating its strong occupancy rates and demand for its properties.

The sale of the Union City property is consistent with Terreno Realty Corporation's investment strategy, which involves selling properties when the prospective total return is particularly low relative to its market value or when the market value is significantly greater than the property's estimated replacement cost. By recycling capital from the sale of this property, Terreno Realty Corporation can reinvest in more attractive investment opportunities within its core markets.

In conclusion, the sale of the industrial property in Union City, California, for $16.9 million reflects Terreno Realty Corporation's ability to identify and capitalize on attractive investment opportunities in the industrial real estate sector. The transaction highlights the company's strong occupancy rates, strategic location, and commitment to recycling capital to maintain a robust portfolio of industrial real estate assets.