Terreno Realty Buys Hialeah Industrial Site for $174M

Terreno Realty Corporation acquired an industrial property in Hialeah, FL for approximately $173.6 million.

The property consists of a 121-acre project entitled for 2.2 million square feet of industrial distribution buildings in Miami’s Countyline Corporate Park immediately adjacent to Terreno Realty Corporation’s seven fully-leased buildings within Countyline. The project, a landfill redevelopment next to Florida’s Turnpike and the southern terminus of I-75, is 29.9% pre-leased with one 191,000 square foot rear-load industrial distribution building and one 506,000 square foot cross-dock industrial distribution building under construction.

At expected completion in 2025 the project, located at the intersection of NW 170th Street and NW 107th Avenue, is expected to contain ten LEED-certified industrial distribution buildings totaling approximately 2.2 million square feet providing 660 dock-high and 22 grade-level loading positions and parking for 1,875 cars for a total expected investment of approximately $491.4 million. The estimated stabilized cap rate of the two buildings under construction is 5.0% and of the eight buildings to be constructed is 6.0%.

Estimated stabilized cap rates are calculated as annualized cash basis net operating income stabilized to market occupancy (generally 95%) divided by total acquisition cost. Total acquisition cost includes 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.