Terreno Realty Corporation has expanded its industrial holdings in the New York City area with the acquisition of a fully leased distribution property in the Red Hook neighborhood of Brooklyn. The Bellevue, WA-based owner and operator of industrial real estate purchased the asset for approximately $26.3 million. The seller of the property was not disclosed.
The asset is located at 659 Court St. in Red Hook and is configured as a single industrial distribution building. The structure totals about 28,000 square feet and is situated on a 1.5-acre site, combining building area with on-site parking and circulation. The property includes parking for 70 cars, supporting both employee and operational needs, and features two grade-level loading positions that facilitate truck and van access for distribution activity.
The property also benefits from riparian access, aligning the site with maritime activity in the surrounding Red Hook area. The building is 100% leased to a maritime goods and services provider, indicating that the asset is being acquired as a stabilized, income-producing investment rather than a vacancy or repositioning opportunity. Based on current income expectations, the transaction is underwritten to an estimated stabilized capitalization rate of 5.2%.
Terreno Realty Corporation focuses exclusively on industrial real estate across six major coastal U.S. markets: New York City/Northern New Jersey, Los Angeles, Miami, the San Francisco Bay Area, Seattle and Washington, DC. Within the New York City/Northern New Jersey market, the company now holds a portfolio of 69 properties totaling nearly 3.6 million square feet. By building count, this makes the New York City/Northern New Jersey region the largest of Terreno’s six target markets.
The Red Hook acquisition further consolidates Terreno’s presence in a dense coastal logistics hub within New York City. With the asset fully leased on acquisition and supported by both road and riparian access, the property reinforces the company’s strategy of owning and operating industrial facilities that serve high-barrier, supply-constrained coastal markets.
