Terreno Acquires JFK Airgate Center Buildings for $53.1M

Terreno Realty Corporation, a Maryland corporation focused on acquiring industrial real estate, announced that it has purchased four buildings and an adjacent 0.2 acre land parcel in Queens, New York for $53.1 million, or roughly $232 per square foot. While terms of the deal were not disclosed, it is known that AMB Property Corporation, which merged with Prologis in 2011, previously purchased the properties for $34.4 million.

JFK Airgate Center includes three industrial warehouses and one office building with underground parking amenities and quick access to the JFK cargo area via a ramp two blocks from the property. The properties were approximately 98.6% leased at the time of sale to 18 tenants, including some of the largest international air cargo and logistics firms. The individual properties are:

Airgate I – front-load warehouse/distribution building containing approximately 65,000 square feet with 14 dock-high and 3 grade level loading positions and parking for 56 cars at 151-02 132nd Avenue;

Airgate II - front-load warehouse/distribution building containing approximately 66,000 square feet with 12 dock-high and 3 grade level loading positions and parking for 76 cars at 150-10 132nd Avenue;

Airgate III - front-load warehouse/distribution building containing approximately 73,000 square feet with 18 dock-high and 1 grade level loading positions and parking for 138 cars at 152-02 Baisley Boulevard; and

Airgate IV – office building containing approximately 25,000 square feet and parking for 58 cars at 152-01 133rd Avenue.

For more news and information visit Blumberg Capital Partners.

Prologis Sells $118M Portfolio to Clarion

San Francisco-based Prologis, Inc. sold a 2.8 million square foot industrial portfolio to Clarion Partners for $118 million this month reports the Dener Post. The 13 properties, with an average 90% leased, are located in nine markets including Atlanta, Cincinnati, Columbus, Dallas, Indianapolis, San Antonio, Phoenix, Salt Lake City and Tracy, CA. CB Richard Ellis brokered the deal.

A spokesperson for Clarion said there is no breakdown of value for each of the properties. GlobeSt.com discovered that the portfolio includes: the Patterson Pass Business Park #8 and #10 in Tracy, CA; Crossroads Corp. Center #1 and #3 and the Salt Lake International Distribution Center #8 in Salt Lake City; Kyrene Commons #3 in Tempe, AZ; Tri-County Distribution Center #1 in Schertz, AZ; the Waters Ridge Distribution Center #1 in Lewisville, TX; the Plainfield Park Building #3A in Plainfield, IN; the Capital Park South Distribution Center #4 in Grove City, OH; the West Chester Commerce Park #2 in West Chester, OH; the Princeton Distribution Center #1 in Cincinnati; and the Progress Distribution Center #1 in Lawrenceville, GA.

"This disposition is part of our continuing program to enhance investor returns in our private capital funds," said Guy F. Jaquier, chief executive officer of Prologis Private Capital. "We are selectively selling properties where we have maximized value or where they no longer fit our strategic goals and objectives."

Prologis owns or has investments in properties of about 600 million square feet in 22 countries, according to the company. Its corporate headquarters moved to San Francisco from Denver following a merger with AMB Property Corp. but its operations headquarters remain in Denver.

For more news and information visit Blumberg Capital Partners.

AMB Property And ProLogis Merging

AMB Property Corporation and ProLogis have announced a definitive agreement to merge today, creating a real estate company with a total market value of $24 billion according to a New York Times article. Under the terms of the agreement, each ProLogis common share will be converted into 0.4464 of a newly issued AMB common share, and the combined company will be an UPREIT. The merger is subject to customary closing conditions, including receipt of approval of AMB and ProLogis shareholders. The companies reportedly expect the transaction to close during the second quarter of 2011.

"This merger is about two great companies coming together to create a stronger platform for sustainable value creation and growth. By joining forces, this merger will create a company positioned to be the leading global provider of logistics real estate – a Blue Chip REIT," said Hamid R. Moghadam, AMB CEO. "The combined company will be a global player active on four continents. This enhanced platform will enable us to better serve the needs of multi-market customers and provide them with both existing world-class facilities and unmatched development capabilities."

"This combination will help create the most efficient, effective industrial real estate organization with the best, most diverse talent. And, we have developed an achievable plan to put these companies together seamlessly," added Walter C. Rakowich, ProLogis CEO. "The merger of these two leading industrial platforms will advance a number of priorities already underway at each company. These priorities include improving efficiency and reducing costs by better aligning our portfolios through the reduction of non-core assets and the recycling of capital into higher growth opportunities; increasing asset utilization by stabilizing the operating portfolio; leasing up the development portfolio; and monetizing the land bank."

For more news and information visit Blumberg Capital Partners.