More than two decades after acquiring the site, Terreno Realty Corp. realized triple digit capital gains with its $144.2 million sale of a South Brunswick industrial property.
The Washington-based acquirer, owner and operator of industrial real estate announced the Middlesex County sale Oct. 7. The 35.5-acre property includes a 100%-leased 603,000-square-foot industrial distribution building, according to the seller.
The buyer was not disclosed.
Terreno said it acquired the original property – with 413,000 square feet, at the time – in 2010 for $22.5 million. ConnectCRE reported that property address as 130 Interstate Blvd. in South Brunswick. The offloaded property stands adjacent to a 190,000-square-foot expansion at 110 Interstate Blvd., which Terreno still owns, according to its website. The company says it invested $13.6 million at the neighboring site.
Terreno pegged the unleveraged internal rate of return from the investment at 13.4%.
In 2023, Terreno sold a North Bergen industrial site for $25.5 million, marking gains from the $14 million it paid to acquire the property in 2017.
With a presence in six major coastal U.S. markets, according to the company, Terreno’s New York City/Northern New Jersey market comprises:
- 67 buildings
- 3.9 million square feet
- 98.5% occupancy
- 28% of annualized base rent
Amid a seemingly stabilizing market, NAI James E. Hanson identifies the average asking rent in Middlesex County at $13.82 in its newly released third quarter industrial report. After nine consecutive quarters, net absorption in the sector was positive in Q3, according to the paper.
