Terreno Realty can’t get enough of Countyline Corporate Park in Hialeah.
The real estate investment trust is under contract to purchase a massive development site on the northern edge of the industrial campus for $173.6 million, according to Securities and Exchange Commission filings. The 121-acre property, which allows for 2.2 million square feet of distribution facilities, stretches from Northwest 170th Street to roughly West 114th Terrace, and from Northwest 107th Avenue to Northwest 97th Avenue.
The deal is part of Terreno’s planned real estate shopping spree. The REIT is using proceeds from a 5 million-share common stock offering for property purchases, a prospectus filed to the SEC shows. Terreno offered shares at $62.50, for a total of $312.5 million. The Hialeah deal would be one of four planned purchases of industrial real estate nationwide, for a combined $259.5 million.
Records show Florida East Coast Industries owns the 121 acres at Countyline Corporate Park. Miami-based FECI’s industrial and logistics real estate arm, Flagler Global Logistics, is the master developer of the industrial campus that runs between Northwest 170th and 154th streets and between Northwest 107th and 97th avenues.
Terreno expects to invest $491.1 million to build 10 distribution facilities on the site, to be completed in 2025. A 191,000-square-foot building and a 506,000-square-foot building are under construction, the SEC filings state. The property is nearly 30 percent preleased.
Terreno already owns seven fully leased buildings at Countyline Corporate Park, including a pair of warehouses spanning 407,000 square feet combined, immediately south of the site that’s under contract. The REIT paid $73.2 million for the buildings at 4281 and 4341 West 108th Street last year.
In 2021, Terreno paid $50 million for buildings at 4021 and 4071 West 108th Street, also at Countyline Corporate Park.
The REIT’s bet on South Florida industrial real estate comes as the market has calmed down from the leasing spree of the last two years. Tenant demand in Miami-Dade County fell to 37,000 square feet in the fourth quarter of last year, from 1.7 million square feet in the same period of 2021.
Countyline Corporate Park investment sales have continued, with Ares Management dropping $111 million for a 52-acre development site in January.