Terreno Realty Corp. is expanding its industrial holdings in Hialeah, Fla., the firm announced Thursday.
In its latest acquisition, Terreno, a real estate investment trust based in San Francisco, paid $74.1 million for two industrial buildings in Hialeah, which are adjacent to properties it already owns.
The new Hialeah properties include two recently developed warehouses totaling 402,000 square feet on 19 acres. The warehouses are at 4181-4241 West 108th Street, near Florida’s Turnpike and the end of Interstate 75.
The newly acquired warehouses are 100 percent pre-leased to seven tenants. The property includes 328 parking spaces.
Terreno owns three adjacent buildings – including 4151 West 108th Street, which the company bought for $39 million in July.
Terreno said in a statement that the capitalization rate of the property is 3.8 percent.
The rich valuation reflects strong interest in distribution space, a sector that has seen a flurry of recent deals. In one example, a Coral Springs property leased to Amazon sold this week for $91.8 million. And two cold storage warehouses in Miami-Dade County traded last week for $74 million.
Jeff Ostrowski can be reached at firstname.lastname@example.org.