REIT Plans Major Investment in Miami-Area Distribution Development
A real estate investment trust said it will use a stock offering to fund the $173.6 million acquisition of 121 acres in Miami-Dade County.
Terreno Realty of Bellevue, Wash., said in a public filing this month that it has a purchase-and-sale agreement for land at Countyline Corporate Park in northwest Hialeah, near the intersection of Interstate 75 and Florida’s Turnpike. The site is entitled for 2.2 million square feet of distribution space.
In a prospectus filed with the Securities and Exchange Commission, Terreno Realty divulged plans for an offering of 5 million shares of stock at $62.50 each. The offering would raise $310 million and fund real estate purchases, including the deal in Hialeah, the company told regulators.
Terreno said the 2.2 million square feet of development is already 30 percent pre-leased. A 191,000-square-foot warehouse has been completed, and a 506,000-square-foot cross-dock building is under construction, Terreno reported. The company plans to build an additional eight warehouses there in the next few years.
Terreno said its overall plans call for it to spend $491.1 million to buy land and build at Countyline Corporate Park. The company already owns seven buildings in the project.
Burgeoning demand for distribution space has driven up land prices and rental rates nationwide and in Miami-Dade County in recent years.
Jeff Ostrowski can be reached at firstname.lastname@example.org.