Terreno Realty Corp. paid $44 million for an industrial building in Elizabeth, New Jersey, in the latest move notched amid the scorching industrial real estate market in the Northeast.
The San Francisco-based company announced its acquisition of the 31,000-square-foot property on Thursday morning, but did not identify the seller of the six-acre site.
Located at 228 North Avenue, the site abuts the New Jersey Turnpike and offers access to major transportation hubs nearby, including Port Newark and the Newark Liberty International Airport. Features include 52 dock-high loading positions, two grade-level loading positions and a parking lot fit for 33 cars and 153 trailers.
The industrial property comes 100 percent leased by one tenant, who is signed on a short-term basis. Estimated stabilized cap rate is 4.8 percent.
Terreno is a player in the industrial real estate market on both coasts. The company has properties in Los Angeles, San Francisco, Seattle, Miami, Washington, D.C. and the New York metro area.
Terreno’s portfolio includes at least 241 buildings encompassing 14 million square feet. Last week, the company announced its acquisition of a 12,000-square-foot industrial building in East Williamsburg, Brooklyn; unlike the Elizabeth property, the one in East Williamsburg is vacant.
Earlier this year, Terreno paid $50 million for two buildings at FECI’s Hialeah industrial complex, the Countyline Corporate Park. Those buildings totaled 274,000 square feet on 15.9 acres.
Industrial real estate market emerged as one of the hottest sectors in the industry amid a global supply shortage and ecommerce boom. As space becomes harder to come by, the sector set records across several key metrics in the third quarter, including vacancy’s fall to an all-time low of 4.1 percent. Net absorption reached 140 million square feet and average rents notched an all-time high of $7.18 per square foot.