Terreno to Develop $491M Miami Industrial Project

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Terreno Realty Corp. intends to further expand at Countyline Corporate Park, a 620-acre master-planned industrial campus developed by Florida East Coast Industries in Hialeah, Fla.

According to a Securities and Exchange Commission Filing from February 9, Terreno plans to pay $173.6 million for a 121-acre site within the Hialeah industrial park where a 2.2 million-square-foot campus is envisioned. Development costs would total some $491.1 million.

The land purchase is part of a four-property round of investments valued at $259.5 million. The acquisitions will be funded through Terreno’s 5.75 million-share offering, priced at $65.06 per share. Underwriters Goldman Sachs and KeyBanc Capital Markets agreed to purchase 2.5 million shares each, generating a combined $356.2 million in financing, according to Bisnow.

Future developments in a sought-after campus

Already 29.8 percent preleased, the Hialeah development site includes a completed 191,000-square-foot warehouse and a 506,000-square-foot distribution center, currently underway. Terreno intends to develop eight additional buildings, slated for completion by 2025. The 10 facilities are expected to obtain LEED certification.

The site that Terreno plans to acquire is near seven fully occupied properties that the firm already owns in Countyline Corporate Park. In July 2021, the company paid $39.4 million for a 221,000-square-foot facility that was sold by Flagler Global Logistics, the master developer’s subsidiary, after having purchased the park’s buildings 24 and 25 in April for $50 million.

The 8.5 million-square-foot Countyline Corporate Park has attracted the investors’ attention in recent years. Also in 2021, CenterPoint Properties acquired two facilities at the same business park, totaling more than 1 million square feet. The buildings, leased to Home Depot, traded for $184 million.

Ares Management also made acquisitions within Countyline Corporate Park in 2022. The company paid $62 million for two under-construction buildings.