Terreno Realty Corporation completed the sale of a 231,000‑square‑foot industrial distribution complex on 11.1 acres in Gardena, California, for $44 million. The transaction closed on March 18 2026, the day before the company publicly disclosed the sale.
The property was originally acquired on December 15 2017 for $37.6 million, giving the REIT an unleveraged internal rate of return of 6.3 %. The $44 million proceeds represent a 17 % premium over the purchase price and add $44 million in cash to Terreno’s balance sheet, a sizable infusion relative to its $600 million revolving credit facility and $200 million outstanding debt balance as of the end of 2025.
The sale is part of Terreno’s capital‑recycling strategy, which seeks to divest assets that offer low prospective returns or whose market value exceeds replacement cost. By selling the Gardena site, the company can redeploy capital into higher‑return opportunities or use the cash to reduce debt, thereby improving leverage and freeing resources for future acquisitions in its core coastal markets.
Terreno’s broader strategy focuses on acquiring, owning, and operating flexible industrial real estate in infill locations across six major U.S. coastal markets. The company targets properties at a discount to replacement cost and then enhances value through renovation, re‑tenanting, or operational improvements. The Gardena sale aligns with this approach, as the property was under redevelopment and represented a mature asset that no longer fit the REIT’s growth profile.
The transaction adds liquidity and supports Terreno’s ongoing portfolio optimization. While no specific market reaction has been reported, the sale underscores the company’s disciplined approach to capital allocation and its focus on high‑demand industrial assets in coastal regions.
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