Terreno Lands Tenant for Queens Industrial Property

Terreno Realty Corp. has leased an approximately 48,000-square-foot industrial property in Long Island City, N.Y., to a new tenant, the company announced Monday.

The distribution building is on a 2.2-acre site at 49-10 27th St., adjacent to the entrance of the Queens-Midtown Tunnel. It features 10 dock-high and 14 grade-level loading positions with a total investment of $35.8 million.

The redeveloped property is now fully leased to a contractor and rigging provider through a lease that starts this month and runs until August 2036. Terreno reported that the estimated stabilized cap rate is 5.7 percent. The acquisition’s dollar value was not disclosed, and Terreno did not reply to Commercial Property Executive’s request for additional information.

The Class B building was completed in 1950 and appears to have been previously occupied by UPS, which sold the building to Terreno for $31.1 million in July of this year, according to information provided by Yardi Matrix.

Outer boroughs holding their own

In the outer boroughs industrial sector, Brooklyn and Queens continue to dominate the market, accounting for 88.9 of total leasing volume and eight of the quarter’s top 10 transactions, according to a third-quarter report from Cushman & Wakefield.

And while the addition of lower-cost spaces helped push overall average asking rents down by $1.24 per square foot quarter-over-quarter to $27.65 per square foot, Queens was among the boroughs that saw a smaller decrease.

Queens’s overall vacancy was 5.0 percent on an inventory of 58.2 million square feet. It was the only outer borough to show positive net absorption year to date, according to Cushman & Wakefield.

Terreno focuses on acquiring and operating industrial real estate in six major coastal U.S. markets: New York City/Northern New Jersey, Los Angeles, Miami, the San Francisco Bay Area, Seattle and Washington, D.C.

True to that mission, earlier this month Terreno acquired a 121,000-square-foot warehouse in the Seattle suburb of Tikwila from a private individual for $27.1 million and a 180,000-square-foot shell warehouse in Hyattsville, Md., from Atapco Properties for $50 million.