Terreno Pays $50M for DC Shell Warehouse

December 9, 2025

Investment Development Industrial Mid-Atlantic More News Washington D.C.

Interior build-out work is scheduled to wrap up in 2027.

Terreno Realty Corp. has paid $50 million for an 180,000-square-foot shell warehouse structure in Hyattsville, Md., close to D.C. Atapco Properties sold the asset, according to Yardi Matrix information.

The property requires the construction of interior finishes, for which Terreno must first secure the necessary permitting. Total expected investment lands at $57.6 million—including acquisition costs—with an estimated stabilized cap rate of 5.2 percent. The project is set to bolster D.C.’s industrial completions in 2027.

The site initially held a 1968-developed facility, which Atapco acquired for $10 million in 2020, planning to demolish the building and replace it with a new warehouse. Bank of America issued a $31.5 million construction loan in 2022, the same source shows, while Chesapeake Contracting Group served as general contractor.

This new structure features a rear-load layout with 45 dock doors and one grade-level loading position, as well as parking arrangements for 156 vehicles.

Located on more than 14 acres at 2300 Craftsman Circle, the property is about 7 miles northeast of downtown Washington, D.C., within approximately 1 mile of the intersection of U.S. Route 50 and the Baltimore-Washington Parkway.

Terreno acquires, owns and operates industrial properties across six U.S. markets, having a portfolio that spans 20.2 million square feet across 307 buildings, according to its website.

The firm kicked off an acquisition spree during the second half of the year, paying $194.3 million in September for 509,000 square feet of industrial properties across Florida and New Jersey. One month before that, it acquired 720,000 square feet of product in Woodinville, Wash., for $232.6 million.

D.C. industrial investment surges

The industrial transaction activity across Greater D.C. clocked in at $1.2 billion during the first 11 months of 2025, marking a 45.7 percent increase year-over-year, according to Yardi Matrix data. More than 6.9 million square feet of product changed hands, representing another impressive growth of 73 percent compared to the previous year.

One such D.C. deal closed in September, when Equus Capital Partners paid $102.6 million to Mapletree Investments for a 576,852-square-foot portfolio encompassing six warehouses in Upper Marlboro, Md.