Terreno Realty Corporation has acquired a fully leased industrial property in Brooklyn’s Red Hook neighborhood for approximately $26.3 million, expanding the company’s industrial real estate portfolio in the New York City market.
The NYSE-listed real estate company completed the acquisition on Aug. 13, 2026. Located at 659 Court Street, the property includes an approximately 28,000-square-foot industrial distribution building situated on 1.5 acres.
The site is 100% leased to a maritime goods and services provider and offers riparian access, a feature that provides direct access to the waterfront and is particularly relevant to the property’s existing maritime use.
The facility also includes two grade-level loading positions and parking for 70 vehicles. Terreno estimates the property’s stabilized capitalization rate at 5.2%.
The acquisition adds another industrial asset to Terreno’s New York City and Northern New Jersey portfolio, one of six major coastal U.S. markets where the company concentrates its investments. Red Hook’s waterfront location and proximity to densely populated sections of Brooklyn make industrial sites in the neighborhood useful for distribution, service and maritime operations.
At approximately $26.3 million for 28,000 square feet of building space, the transaction equates to roughly $939 per square foot based solely on the building area. The property’s 1.5-acre site, parking capacity and waterfront access are additional components of the acquisition.
Terreno calculates its estimated stabilized cap rate using annualized cash-basis net operating income adjusted to market occupancy, generally 95%, divided by the property’s total acquisition cost.
That total acquisition cost extends beyond the initial purchase price and includes buyer due diligence and closing expenses, estimated near-term capital expenditures and leasing costs required to reach stabilization. It also incorporates the effects of marking assumed debt to market when applicable.
The fact that the Court Street property is already fully occupied provides Terreno with an income-producing asset at acquisition, while its location and physical characteristics add to the company’s portfolio of industrial properties serving supply-constrained coastal markets.
Terreno focuses exclusively on industrial real estate in six major U.S. regions: New York City/Northern New Jersey, Los Angeles, Miami, the San Francisco Bay Area, Seattle and Washington, D.C.
The company’s strategy centers on acquiring, owning and operating industrial properties in large coastal markets where available land and development constraints can limit the supply of logistics and distribution facilities.
The $26.3 million Red Hook transaction continues that strategy with a fully leased Brooklyn property combining industrial distribution space, substantial on-site parking and direct waterfront access.