Terreno Realty Expands Seattle-Area Footprint

16650-16750 Woodinville Redmond Road. Image via Google Earth

Feeling no end-of-year malaise, Terreno Realty Corp. continues its buying binge with the acquisition of 16650-16750 Woodinville Redmond Road, a two-building industrial asset encompassing 118,000 square feet in Woodinville, Wash. Terreno purchased the Seattle-area property, which is 100 percent leased, from Woodinville CD LLC in a transaction valued at $33.5 million. The purchase marks the company’s fifth acquisition this month.

Also known as Buildings C and D, 16650-16750 Woodinville opened in 1999 on a 9.6-acre site near the intersection of Interstate 405 and State Route 522 within close proximity of the Sammamish River. The buildings are also immediately adjacent to two facilities, 16224-16240 Woodinville Redmond Road, which Terreno had acquired in October 2021 for $23.6 million.

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16650-16750 Woodinville offer 27 dock-high and eight grade-level loading positions, as well as parking accommodations for 291 vehicles. Four businesses call the distribution facilities home today, including energy drink company Zipfizz and Superior Cleaning & Coit Cleaning and Restoration.

Packing a portfolio

Terreno, which focuses on acquiring and operating industrial assets exclusively in six major coastal U.S. markets, has been quite acquisitive throughout 2021, purchasing a mix of core and value-add assets at every turn in today’s highly competitive industrial investment sales climate. The company seems on track with the vision it had at the beginning of the year.

“We see attractive acquisition opportunities and expect our 2021 acquisition volume to exceed that of 2020, perhaps significantly so,” Blake Baird and Michael Coke, co-founders of Terreno Realty Corp., wrote in the annual letter to shareholders dated March 2, 2021.

In the fourth quarter alone, Terreno has averaged more than one acquisition per week. Notable transactions include the $74.1 million purchase of 4181-4241 West 108th St. in Hialeah, Fla., a two-building, 402,000-square-foot asset in metropolitan Miami, and the $60.8 million acquisition of 5150-5236 Eisenhower Ave., a 199,000-square-foot, suburban Washington, D.C., complex in Alexandria, Va.

“Within our six markets, we have increasingly focused on urban infill locations. While our net growth will remain limited to a size where we can make directly informed operational decisions, we feel more strongly today than we did 11 years ago about the long-term investment merits of our strategy and the growth opportunities ahead,” Baird and Coke added in the shareholder letter.