Terreno Realty Corporation announced the acquisition of an industrial property in San Francisco, California, for approximately $25.9 million, further expanding its footprint in the San Francisco Bay Area, one of the company’s six target coastal U.S. markets. The transaction reflects Terreno Realty’s continued strategy of acquiring high-quality industrial assets in supply-constrained locations with strong long-term demand fundamentals.
The property is located at 201-395 Mendell Street in San Francisco’s India Basin neighborhood and consists of a 65,000-square-foot industrial distribution building situated on approximately 3.8 acres. The facility is designed to support a range of logistics and distribution operations and includes 17 dock-high loading positions, 10 grade-level loading positions, and parking for 95 vehicles. Terreno Realty noted that the building is currently 100% leased to four tenants, providing stable occupancy and contractual cash flows through May 2031.
The acquisition adds another well-located asset to the company’s Bay Area portfolio and provides exposure to a market characterized by limited industrial supply and strong demand from transportation, distribution, and last-mile logistics users. The India Basin location offers access to major transportation routes and serves one of the country’s most densely populated and economically significant regions, making it an attractive area for industrial real estate investment.
Terreno Realty estimates that the property will generate a stabilized cap rate of approximately 5.5%. The company defines stabilized cap rates based on annualized cash-basis net operating income adjusted to market occupancy levels and total acquisition costs, which include the purchase price as well as due diligence expenses, capital expenditures, and leasing costs. Management views the metric as an important measure for evaluating expected returns on newly acquired assets.
Headquartered in Bellevue, Washington, Terreno Realty focuses on acquiring, owning, and operating industrial real estate in six major coastal markets: New York City and Northern New Jersey, Los Angeles, Miami, the San Francisco Bay Area, Seattle, and Washington, D.C. The company seeks to assemble portfolios of strategically located industrial properties that benefit from proximity to population centers, transportation infrastructure, and key economic activity hubs. Through its disciplined acquisition strategy, Terreno Realty continues to expand its presence in markets where supply constraints and growing e-commerce and logistics demand support long-term value creation.
