Terreno Realty Corporation closed a $50 million purchase of a rear‑load industrial distribution building in Hyattsville, Maryland on December 4, 2025. The 180,000‑square‑foot facility sits on 14.1 acres and is currently shell‑complete, positioning the company to add a high‑quality logistics asset to its Washington, D.C. portfolio.
The Hyattsville acquisition fits Terreno’s strategy of acquiring infill industrial sites in six major coastal markets—Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. The company has previously invested in the area, buying a property for $8 million in November 2021, and the new asset expands its presence in a submarket that offers strong demand from modern logistics tenants. Terreno plans to invest an additional $7.6 million to complete interior finishes, with a target stabilization in early 2027 and an expected cap rate of 5.2%.
Terreno’s Q3 2025 earnings underscore the financial strength that underpins this acquisition. Net income rose to $103.4 million, or $1.00 per share, from $36.5 million ($0.37 per share) in Q3 2024, while funds from operations increased to $0.67 per share from $0.62. The company’s portfolio grew to 307 buildings totaling 20.2 million square feet and 44 improved land parcels as of September 30, 2025, and Q3 2025 acquisitions totaled $472.6 million. These results demonstrate the scale and cash‑flow capacity that enable Terreno to pursue high‑barrier, infill opportunities like Hyattsville.
The planned $57.6 million total investment—$50 million purchase price plus $7.6 million for construction—reflects Terreno’s disciplined approach to value creation. By acquiring assets at a discount to replacement cost and investing in shell‑complete properties, the company can leverage operational efficiencies and achieve a 5.2% stabilized cap rate, which aligns with its target return profile for the Washington, D.C. market. The early 2027 stabilization target also positions the asset to capture the growing demand for modern, well‑located distribution centers in the region.
Terreno’s broader activity in 2025 highlights a continued focus on high‑barrier coastal markets. In September, the company completed a $194.3 million acquisition of industrial properties in Florida and New Jersey, bringing its multi‑market portfolio acquisition total to $426.9 million. The Hyattsville deal adds a strategically located asset that complements these investments and reinforces Terreno’s commitment to building a diversified, high‑quality industrial portfolio across the country.
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