Terreno Realty Corporation (NYSE: TRNO) has expanded its South Florida industrial portfolio with the acquisition of a fully leased distribution property in Hialeah Gardens for approximately $56.3 million.
The transaction, completed on June 17, adds a strategically located industrial asset to Terreno’s Miami market holdings as demand for logistics and distribution space continues to be supported by e-commerce activity and South Florida’s role as a major transportation hub.
The property comprises a single industrial distribution building totaling approximately 98,000 square feet on 16.8 acres at 10910 NW 144th Street. Positioned adjacent to the intersection of Florida’s Turnpike and Okeechobee Road, the site offers direct access to key regional transportation corridors serving Miami-Dade County and the broader South Florida market.
The facility is fully leased to a leading e-commerce company, providing Terreno with immediate cash flow from a tenant operating in one of the strongest demand drivers for industrial real estate. The company estimates the investment will generate a stabilized capitalization rate of 5.0%.
In addition to the distribution building, the property features nine dock-high loading positions, six grade-level loading doors and parking capacity for 596 vehicles. The large parking field provides flexibility for logistics operations, employee parking and fleet management, characteristics that have become increasingly valuable as industrial users seek sites capable of supporting evolving supply chain requirements.
The acquisition reflects Terreno’s continued focus on infill industrial properties located near major population centers, transportation infrastructure and consumption hubs. South Florida remains one of the company’s targeted coastal markets due to its growing population, expanding logistics sector and importance as a gateway for domestic and international trade.
Miami’s industrial market has remained among the strongest in the country in recent years, supported by limited land availability, increasing e-commerce fulfillment needs and continued growth in import-export activity. Properties with access to major highways and regional distribution networks have attracted significant investor interest as tenants compete for strategically located space.
Terreno’s investment strategy centers on acquiring, owning and operating industrial real estate in six major coastal U.S. markets: New York City and Northern New Jersey, Los Angeles, Miami, the San Francisco Bay Area, Seattle and Washington, D.C. These markets are characterized by dense population centers, constrained industrial land supply and long-term demand drivers tied to logistics, distribution and last-mile delivery.
The Hialeah Gardens acquisition aligns with that strategy by adding a stabilized asset in a high-barrier-to-entry submarket with strong transportation connectivity. The property’s proximity to Florida’s Turnpike and Okeechobee Road provides access to major freight corridors serving Miami International Airport, PortMiami and regional distribution centers throughout South Florida.
Terreno calculates stabilized capitalization rates by dividing annualized cash-basis net operating income, adjusted to market occupancy levels, by total acquisition costs. Those costs include the purchase price, transaction expenses, near-term capital improvements and leasing expenditures required to achieve stabilization.
With the addition of the Hialeah Gardens property, Terreno continues to deepen its presence in the Miami industrial market, a region that remains a key component of the company’s long-term growth strategy and broader focus on high-demand coastal logistics real estate.