WASHINGTON, DC—Terreno Realty, a San Francisco REIT that includes the DC area as one of its six core investment areas, has scooped up an industrial complex in the city for $115.5 million.
Located at 3015-3535 V St., NE, the complex consists of six front-load distribution buildings containing approximately 820,000 square feet. They are located on 28.2 acres one block from New York Avenue/Route 50.
They feature 102 dock-high and eight grade-level loading positions, parking for 470 cars. The buildings are 87% leased to 22 tenants. The estimated stabilized cap rate of the traded property is 5.8%.
The purchase price is quite larger than what the REIT typically spends for an acquisition in this area, although it has focused primarily on smaller buildings in the Baltimore area market. That, however, appears to be shifting somewhat, with the REIT increasingly picking up product that is located within the Beltway.
For example, last month it acquired a five-asset industrial property in Landover, MD, for $31.2 million. The 384,000 square foot complex is located on 18.9 acres three miles from the District of Columbia.
It calculated the price of its V street purchase as including the initial purchase price, the effects of marking assumed debt to market, buyer's due diligence and closing costs, estimated near-term capital expenditures and leasing costs necessary to achieve stabilization.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
