Terreno Realty Corp. expanded its industrial portfolio in the San Francisco Bay Area after acquiring an approximately 135,000 square foot property in Santa Clara, California. The company acquired 3660 Thomas Road for $54.6 million from an undisclosed seller. According to data from CommercialEdge, the previous owner was Marquesas properties.
The industrial distribution facility was built with 13 dock-height gates, five ground-level loading bays and parking spaces for 91 cars. According to data from Commercial Edge, the property was developed in 1968 and has 40,000 square feet of laboratory space, as well as 2,150 square feet of retail space.
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The building is located on a 6.5 acre site next to the Montague Freeway and has nearby access to US Route 101 which connects tenants to San Francisco. The location also puts it within driving distance of San Jose International Airport and the Port of Oakland. According to Terreno Realty, the property is fully leased to four tenants whose leases expire between 2022 and 2027.
Terreno Realty’s Six Markets Strategy
Terreno Realty’s acquisition of 3660 Thomas Road is part of its six-market strategy, where the company is focusing on six major US coastal markets for its industrial acquisitions. Terreno Realty invests only in the Los Angeles, Northern New Jersey/New York, San Francisco Bay Area, Seattle, Miami and Washington, DC markets.
In the Bay Area market, the company also acquired a 93,000 square foot industrial distribution center in Oakland, California for $23.8 million in September 2019. More recently, Terreno Realty acquired industrial property of 118,000 square feet in Woodinville, Wash., It’s part of the Seattle Metro market. For Terreno Realty, these six specific markets all have large and growing consumer populations, are close to highly developed airport, port and road infrastructure for easier distribution, and have significant hurdles when it comes to develop similar properties.