Terreno Tears Down Industrial Asset in Carson to Make Way for New Facility
- Jul 27, 2015
By Alex Girda, Associate Editor
An L.A.-area industrial asset is ready for a complete overhaul. Terreno Realty Corporation is prepping the redevelopment of a property it owns in the city of Carson, CA.
Located on South Main Street, the property currently consists of three industrial buildings that total around 186,000 square feet of space. Terreno acquired the industrial buildings back in 2012, and in 2014 also acquired a 34,000-square-foot office building. All four buildings are located on a 14.3-acre site.
The owner’s plan is to demolish the three industrial buildings and build a new front-load structure that would offer 25,000 additional square feet of space. The existing office property is slated for extensive july renovation. Terreno estimates that around $16.4 million will be invested in the new asset. According to a press statement released regarding the redevelopment, the stabilized cap rate of the redeveloped property is estimated at around 6.1 percent. Completion on the new industrial facility is slated for 2016’s Q2.
Leasing for the planned facility has been a success with roughly three quarters of the 210,000 available square feet already under contract. That’s thanks to a ten-year lease that has been inked with FedEx Trade Networks.