Terreno Realty Corporation closed a $27.1 million purchase of a 121,000‑square‑foot industrial distribution building on 7.1 acres at 510 Andover Park West in Tukwila, Washington. The transaction was finalized on December 12, 2025, and the company announced the closing on December 15, 2025.
The building is 100 % leased to a single tenant through February 2027. Management plans to renovate the space after the lease expires so the property can accommodate one to four tenants, a strategy that aligns with Terreno’s value‑add approach. The acquisition was priced at a stabilized cap rate of 3.9 % before renovation, indicating a modest but attractive return in a high‑demand coastal market.
Adding the Tukwila asset expands Terreno’s coastal‑infill portfolio and strengthens its presence in the Pacific Northwest, a region the company targets for growth. The property’s proximity to I‑5 and I‑405 provides logistical advantages for distribution and logistics tenants, reinforcing the company’s focus on high‑barrier, supply‑constrained markets.
Terreno has been active in acquisitions throughout 2025, including a $194.3 million portfolio in Florida and New Jersey in September and a $232.6 million deal in Woodinville, Washington in August. The Tukwila purchase continues that pattern of strategic expansion in key industrial hubs.
The acquisition positions Terreno to capture future leasing opportunities once the current tenant’s lease ends. By converting the single‑tenant space into a multi‑tenant configuration, the company can increase rental income and improve asset diversification, supporting its long‑term portfolio growth strategy.
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