Terreno Realty Corporation has expanded its industrial holdings in New York City with the acquisition of a fully leased distribution property in Brooklyn’s Red Hook neighborhood. The Bellevue, WA-based owner and operator of industrial real estate purchased the asset for approximately $26.3 million. The seller was not identified in the transaction disclosure.
The property is located at 659 Court St. in Brooklyn and is configured as a single industrial distribution building. The facility totals approximately 28,000 square feet situated on 1.5 acres of land. According to information released with the sale, the asset is currently 100% leased to a maritime goods and services provider, indicating in-place cash flow at the time of acquisition.
The building’s features include two grade-level loading positions that support distribution and logistics activity. In addition, the site offers surface parking for approximately 70 cars, providing capacity for on-site employee and visitor parking or vehicle storage. The property also benefits from riparian access, which can be relevant for maritime-related operations and waterfront-oriented logistics uses.
Based on current income and the purchase price, the estimated stabilized capitalization rate for the property is reported at 5.2%. This figure provides a snapshot of the asset’s initial yield profile and positions the acquisition within the broader industrial investment landscape for New York City coastal infill locations. No details were provided regarding financing, capital structure, or loan terms related to the purchase.
Terreno Realty Corporation focuses on acquiring, owning, and operating industrial real estate in six major coastal U.S. markets. The company’s targeted markets are New York City/Northern New Jersey, Los Angeles, Miami, the San Francisco Bay Area, Seattle, and Washington, DC. The newly acquired Red Hook asset adds to Terreno’s existing New York City/Northern New Jersey footprint.
Following this transaction, Terreno’s portfolio in the New York City/Northern New Jersey market now includes 69 properties. These holdings total nearly 3.6 million square feet, making this region the company’s largest by building count among its six coastal markets. The acquisition of the Red Hook distribution facility further concentrates Terreno’s exposure to one of its core gateway markets while maintaining a focus on industrial logistics real estate.
The transaction underscores continued investor interest in fully leased, last-mile and distribution-oriented industrial assets in dense coastal markets. With a stabilized cap rate and a single tenant providing maritime goods and services, the 659 Court St. property fits within Terreno’s established strategy of owning and operating industrial facilities in high-barrier, supply-constrained locations across major U.S. port and gateway metros.
