Terreno Realty Corporation Pays $10.4M for Another Industrial Property in Annapolis Junction
- Feb 26, 2015
Terreno Realty Corporation has acquired another industrial property in the Baltimore/Washington Corridor. The San Francisco-based company paid approximately $10.4 million for the property at 9070 Junction Drive, in Annapolis Junction.
Terreno’s new acquisition consists of one rear-load industrial distribution building, with almost 115,000 square feet of space, on nine acres of land. It provides 25 dock-high and five grade-level loading positions, as well as parking spaces for 178 cars. At the time of the sale, the property was leased to two tenants, with an occupancy of 38%. In a news release, Terreno said the estimated stabilized cap rate of the property is 6.2%.
PropertyShark reports that Bavar Properties Group LLC, the former owner, purchased the nine-acre property in 1994 for $550,000. The company developed the industrial distribution building in 1997. PropertyShark also says that the current market value of the property is $5.8 million.
Terreno started 2015 in full force, with the acquisition of six distribution buildings in Washington, D.C. for approximately $115.5 million, just a few weeks ago. The company owns several other properties in the Washington D.C./Baltimore area. Last fall it paid $13.8 million for a 97,000-square-foot industrial building also located in Annapolis Junction.
According to CBRE’s latest market report, industrial investment sales activity remains very healthy in the Greater Baltimore area, with transaction volume ahead of pre-recession levels. Investors have been more and more willing to take on riskier assets that yield higher returns, so the market has experienced a boost in investment sales volume with capital focused on value-add assets such as Class B product, with bulk, vacant space.
Photo credit: Bavar Properties Group LLC