Terreno Hyattsville Property Buy: What it Means for Growth Plans?

Terreno Realty’s TRNO $50-million acquisition in Hyattsville, MD, looks like a prudent step to deepen its footprint in the region. The company picked up a 180,000-square-foot industrial property near major highways, giving it strong logistics exposure. This move strengthens Terreno’s ability to capture steady rental demand in a supply-constrained market and builds long-term cash flow potential. 

Located at 2300 Craftsman Circle near the intersection of the Baltimore-Washington Parkway and U.S. Route 50, just a mile from Washington, DC, the property offers clear upside. The building is currently shell complete and Terreno plans to invest further to finish the interiors by early 2027, taking the total expected investment to $57.6 million. Management is targeting a stabilized cap rate of 5.2%, which suggests the asset is designed to be a reliable income generator once fully leased. 

The Hyattsville deal also fits into a broader pattern of targeted expansion. Recently, Terreno acquired an industrial property in Queens, NY, for $4.7 million. This comprised a 0.5-acre improved land parcel at 4-28 33rd Street, next to an existing asset. That deal highlights how the company uses smaller acquisitions to build density in core markets and improve operating efficiency over time.

At the same time, Terreno is not just buying stabilized assets; it is also developing new ones. The company recently started construction on Building 35 at Countyline Corporate Park in Hialeah, FL, a large industrial project that reflects confidence in long-term demand for modern logistics space in South Florida. This mix of acquisitions and developments keeps Terreno’s pipeline balanced between near-term income and future growth. 

Overall, the Hyattsville acquisition reinforces Terreno’s steady, market-by-market expansion strategy. By focusing on well-located industrial properties in high-barrier regions and pairing acquisitions with selective developments, the company continues to build a durable portfolio designed for stable cash flows and gradual value creation. 

Shares of this Zacks Rank #2 (Buy) company have gained 7.9% over the past three months compared with the industry’s upside of 1.8%.

Other Stocks to Consider

Some other top-ranked stocks from the broader REIT sector are Rexford Industrial Realty, Inc. REXR and W.P. Carey WPC. Both Rexford Industrial and W.P. Carey carry a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Rexford Industrial’s 2025 FFO per share is pegged at $2.40, suggesting a 2.6% year-over-year increase.

The Zacks Consensus Estimate for W.P. Carey’s 2025 FFO per share is pegged at $4.92, calling for a year-over-year rise of 4.7%.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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