Terreno Finds Big Upside in Fremont
- Jun 29, 2015
By Alex Girda, Associate Editor
As we previously noted, Silicon Valley’s industrial sector has enjoyed a period of strong investment volume. In the latest sign of the market’s performance, an asset in Fremont has commanded $13.4 million.
Seller Terreno Realty Corp. had owned the property at 48603-48622 Warm Springs Blvd. since 2010, when it acquired the property for $7.3 million. According to the seller, the two buildings’ 141,000 square feet of rentable space are currently fully leased to six tenants. In a statement, Terreno estimated that its investment generated a 15.1 percent unleveraged internal rate of return.
The purchase price, the occupancy level and Terreno’s return on investment all suggest a market on the rise. Although Fremont’s activity during the first part of 2015 was slightly below average for Silicon Valley, fundamentals are generally positive and the city should catch up to the rest of the local market.