WASHINGTON, DC–Last year industrial REIT Terreno Realty made one of the largest acquisitions in recent memory: a six-building, 820,000-square foot portfolio on V street, NE for $115.5 million. At the time the property was 87.3% leased to 22 tenants, with 209,000 square feet of leases scheduled to expire prior to Nov. 1, 2016. The San Francisco-based company has announced it has brought the portfolio up to 97.5% occupancy, with 26 tenants.
How did it get to this point? Terreno Realty renewed three tenants for 189,000 square feet and executed new leases with seven tenants for 102,000 square feet. The leases executed since the acquisition have a weighted average lease term of eight years with an average cash rent increase of 65% as compared to the last cash rent on the expiring leases.
This August, the REIT expanded its footprint a bit more in this market, acquiring Hampton Overlook, a 135,000-square foot industrial complex, for $14.1 million. Hampton Overlook, consists of two industrial distribution buildings and one light industrial flex building. It is located on 12.1-acres inside the Capital Beltway at 9150-9250 Hampton Overlook and is 81% leased to nine tenants, has 31 dock-high and 11 grade-level loading positions.
WASHINGTON, DC–Last year industrial REIT Terreno Realty made one of the largest acquisitions in recent memory: a six-building, 820,000-square foot portfolio on V street, NE for $115.5 million. At the time the property was 87.3% leased to 22 tenants, with 209,000 square feet of leases scheduled to expire prior to Nov. 1, 2016. The San Francisco-based company has announced it has brought the portfolio up to 97.5% occupancy, with 26 tenants.
How did it get to this point? Terreno Realty renewed three tenants for 189,000 square feet and executed new leases with seven tenants for 102,000 square feet. The leases executed since the acquisition have a weighted average lease term of eight years with an average cash rent increase of 65% as compared to the last cash rent on the expiring leases.
This August, the REIT expanded its footprint a bit more in this market, acquiring Hampton Overlook, a 135,000-square foot industrial complex, for $14.1 million. Hampton Overlook, consists of two industrial distribution buildings and one light industrial flex building. It is located on 12.1-acres inside the Capital Beltway at 9150-9250 Hampton Overlook and is 81% leased to nine tenants, has 31 dock-high and 11 grade-level loading positions.
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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.
