Terreno Realty Corporation announced that it has acquired an industrial property in Alexandria, Virginia, for approximately $13 million.
The property is located at 5751 General Washington Drive, near the intersection of I-95 and I-495, also known as the Capital Beltway. The location provides access to one of the Washington, D.C. region’s key transportation corridors, making the site suitable for distribution, logistics, and last-mile industrial uses.
The property consists of one industrial distribution building totaling approximately 50,000 square feet. The building sits on 2.8 acres and includes eight dock-high loading positions, one grade-level loading position, and parking for 73 cars.
At the time of the acquisition, the property was 77% leased to three tenants. Terreno Realty said the property has an estimated stabilized cap rate of 5.0%.
Terreno Realty calculates estimated stabilized cap rates by taking annualized cash-basis net operating income, stabilized to market occupancy, generally 95%, and dividing that figure by total acquisition cost.
Total acquisition cost includes the purchase price, due diligence expenses, closing costs, assumed debt adjustments, and estimated near-term capital expenditures and leasing costs needed to stabilize the property.
The acquisition adds to Terreno Realty’s Washington, D.C. regional portfolio, one of the company’s six core coastal U.S. industrial markets. The company focuses on infill industrial real estate in supply-constrained locations where access to major population centers, transportation infrastructure, and distribution networks can support long-term demand.
Terreno Realty’s strategy is centered on acquiring, owning, and operating industrial properties in major coastal markets with dense populations and high barriers to new development. These markets include New York City/Northern New Jersey, Los Angeles, Miami, the San Francisco Bay Area, Seattle, and Washington, D.C.
The Alexandria property fits within that strategy by offering functional industrial space in a high-demand metropolitan area near major highways and regional logistics infrastructure. The existing tenancy provides in-place occupancy, while the remaining vacancy may offer Terreno Realty an opportunity to increase utilization and stabilize the asset over time.
With this acquisition, Terreno Realty continues expanding its portfolio of industrial properties serving users that require access to major urban markets and transportation corridors.
