Terreno Realty has bought a 28,000-square-foot warehouse at 659 Court Street in Red Hook, Brooklyn, for $26.3 million. The real estate investment trust closed the deal Monday, acquiring the waterfront industrial asset from California-based LBA Properties.
LBA Properties flipped the property in under eighteen months. The firm purchased it for $7 million and sold it for $26.3 million, banking a $19.3 million gain on the transaction. The rapid markup reflects surging demand for industrial real estate in Brooklyn's prime waterfront districts.
Red Hook has transformed into one of the city's hottest industrial markets. The neighborhood's proximity to the Port of New York and New Jersey, combined with limited developable land, drives competition among investors and logistics operators. Waterfront warehouses command premium prices due to their appeal for e-commerce distribution centers and manufacturing tenants.
Terreno Realty focuses on acquiring industrial properties in inflationary-protected, supply-constrained submarkets across the United States. The firm targets assets serving essential functions in logistics networks. Brooklyn's Red Hook fits that profile perfectly, offering both scarcity and strong tenant demand.
The 659 Court Street acquisition positions Terreno to capitalize on continued industrial real estate appreciation. Logistics companies seeking Brooklyn-based distribution hubs face limited options, keeping rental rates and property values elevated. The waterfront location enhances the asset's utility for tenants requiring waterborne shipping access or proximity to the port.
For tenants, the acquisition signals stability under an established REIT operator. Terreno typically holds assets long-term, providing occupancy certainty. For competing investors, the deal demonstrates how quickly industrial properties in prime Brooklyn locations appreciate. The eighteen-month turnaround from LBA Properties confirms that waterfront Red Hook warehouses remain among the city's most valuable industrial assets