Terreno Realty buys Brooklyn industrial property for $26.3M

Terreno Realty Corporation, a real estate investment firm, recently purchased an industrial property in Red Hook, Brooklyn for $26.3 million, as announced in a press release on August 13. The property, located at 659 Court Street, consists of a single industrial distribution building on 1.5 acres that contains around 28,000 square feet of space.

This facility features two loading positions at ground level and parking for 70 vehicles. The land offering riparian access is currently fully leased to a maritime goods and services provider. Terreno Realty estimates a stabilized capitalization rate of 5.2% for the property. Calculating this rate involves dividing the property's annualized cash basis net operating income, stabilized at roughly 95% market occupancy, by the total acquisition cost.

This total includes the initial purchase price, adjustments to assumed debt to market value, buyer's due diligence and closing costs, as well as anticipated near-term capital expenditures and leasing expenses required to achieve stabilization. Terreno Realty Corporation specializes in acquiring, owning, and operating industrial real estate in six key coastal U.S. markets, including New York City and Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle, and Washington, D.C.