A Bellevue, Washington-based REIT has reached a deal to acquire the site of a 2.2M SF industrial development in Hialeah for $173.6M.

Terreno Realty Corp. has agreed to purchase 121 acres in Hialeah’s Countyline Corporate Park, it said in a Feb. 10 Securities and Exchange Commission prospectus. Terreno already owns seven fully leased buildings in the vast industrial campus where Florida East Coast Industries is the master developer.

Terreno plans to spend $259.5M on property acquisitions, it said in the filing, with the proceeds of a stock offering of 5.75 million shares on Feb. 13, which raised $356.2M from underwriters Goldman Sachs and KeyBanc Capital Markets.

The site is permitted for 2.2M SF of industrial space, of which nearly 30% is pre-leased. There is already a 191K SF warehouse on the site and a 506K SF distribution center under construction. Terreno said in the filing it plans to construct eight other buildings on the land by 2025 for a total investment of $491.1M.

It's unclear what other properties Terreno has under contract for the remaining $86M it has for acquisitions from the offering. With the remainder of the proceeds it plans to acquire short-term government securities, it said in the prospectus.

Demand continues to outpace supply in red-hot industrial market — rents grew 45% year-over-year in the fourth quarter, although the market has decelerated after rising 60% in Q3, according to JLL data. Forty percent of the industrial space expected to deliver in 2023 is pre-leased.