Terreno Buys Industrial Building in Capitol Heights for $18.1M
- May 19, 2014
Terreno Realty Corp. continues to add new properties to its suburban Maryland portfolio. In a transaction that closed on May 13, the San Francisco-based company acquired another industrial building. The purchase price was approximately $18.1 million.
The property is located on 7.7 acres of land at 1000 Hampton Park Blvd. in Capitol Heights, Md., about four miles east of Washington, D.C. It consists of one industrial distribution building with about 139,000 square feet of space, 18 dock-high and two grade-level loading positions and parking for 210 cars. According to Terreno, at the time of the sale, the property was 100 percent leased to one tenant. The estimated stabilized cap rate is 6.4 percent.
Terreno is making a habit out of buying industrial properties in Maryland. The company has already spent important sums of money to acquire several properties in the area. Last June, it paid $16.7 million to purchase a 349,000-square-foot, two-building property in Elkridge. At the start of December, it paid $5.6 million for a light-industrial building in Prince George’s County. And just days after that it closed another deal, buying a 71,000-square-foot property in Landover for $7 million.
Terreno invests in six major coastal U.S. markets. In the Washington, D.C.-Baltimore area, it currently own 12 industrial buildings with more than 1.3 million square feet of space and an occupancy of over 90 percent.
According to CBRE, the industrial market in suburban Maryland experienced little growth during the first quarter of the year, as both warehouse and flex products saw sluggish demand. The overall industrial vacancy rate remained flat at 12.1 percent, while the overall asking rental rate increased marginally to $8.28 per square foot. The highest asking rates are found in Montgomery County ($9.50 per square foot), Frederick County ($8.84 per square foot) and Prince George’s County ($7.46 per square foot).
Charts courtesy of CBRE.