Terreno Realty Corporation recently completed the redevelopment and stabilization of Terreno 147th Street in Hawthorne, California. The 31,000 square foot industrial distribution building is situated on 1.3 acres of land and boasts four dock-high and one grade-level loading positions, along with parking for 35 cars, including four electric charging stations. The property has been fully leased to an atomic energy company from the moment it was completed until April 2028. Additionally, the building is anticipated to achieve LEED certification, representing a total investment of $15.6 million with an estimated stabilized cap rate of 5.6%.
This development marks a significant milestone for Terreno Realty, securing a long-term lease with a reputable tenant in a prime location. Despite the relatively low cap rate of 5.6%, the project’s strategic positioning in the competitive Los Angeles market and its modern amenities, such as EV charging stations and sustainable features, cater to the evolving needs of tenants and align with environmental standards. The lease agreement through 2028 provides a stable income stream, enhancing the property’s value and ensuring income visibility for the foreseeable future.
The Hawthorne area, known for its proximity to aerospace and technology companies, offers promising growth potential for rent appreciation. The property’s modern specifications and sustainable design are likely to attract and retain high-quality tenants, contributing to long-term value appreciation. This successful redevelopment project underscores Terreno Realty’s commitment to delivering high-quality industrial assets and capitalizing on strategic investment opportunities in key markets.
In conclusion, Terreno Realty’s completion of the Terreno 147th Street redevelopment in Hawthorne, California, highlights the company’s ability to secure full tenancy with a leading tenant, setting the stage for long-term success and value creation in a competitive real estate market. The project’s modern features, sustainable design, and strategic location position it for sustained growth and tenant satisfaction in the years to come.
