A 134,000-square-foot industrial building in Santa Ana that’s fully occupied by The Home Depot was recently bought by a Bellevue, Washington-based real estate investment trust, or REIT.
Late last month, Terreno Realty Corp. bought The Home Depot retail location at 3500 W.
MacArthur Blvd. in Santa Ana for $49.5 million, or $368 per square foot, the REIT confirmed.
The Home Depot is the only tenant of the building, which was built on 12.1 acres of industrial zoned land in 1990. The home improvement retailer in 2006 moved into 3500 W. MacArthur Blvd., which features seven dock-high and three grade-level loading positions, according to CoStar data.
Terreno Realty bought the property at an estimated stabilized cap rate of 5.7%.
New York-based Kimco Realty Corp. was the seller, according to CoStar data.
Terreno Realty buys, operates and owns industrial real estate in six markets: Los Angeles, Miami, New York City/Northern New Jersey, San Francisco Bay Area, Seattle and Washington, D.C.
The REIT’s portfolio includes 19.3 million square feet of space across 298 buildings.
Terreno’s Orange County portfolio includes industrial properties at 1720 E. Garry Ave. in Santa Ana, 12 McLaren in Irvine, 1160 Fee Ana St. in Anaheim and 1150 & 1250 W. Trenton Ave. in Orange.
Bellevue, Washington-based Terreno Realty traded at $56.55 with a $5.8 billion market cap at press time (NYSE: TRNO). The Home Depot, meanwhile, closed at $373.16 (NYSE: HD).
The Home Depot and Tariffs
The Home Depot, in its most recent quarterly filing with the U.S. Securities and Exchange Commission, reported net sales of $39.9 billion and net earnings of $3.4 billion for the first quarter of its current fiscal year.
The home improvement retailer also said it is monitoring the U.S.’s trade policy.
“While tariff and other trade policy developments since the beginning of fiscal 2025 have not had a meaningful financial impact on our business to date, trade policy discussions are ongoing,” The Home Depot’s SEC filing said. “As a result, we cannot predict with certainty their ultimate impact on our business in future periods, including our results of operations and cash flows.”
The Home Depot, in its filing, added it spent the past 10 years diversifying its global supply chain while also maintaining a majority of its operations within the United States.
“We intend to continue diversifying our global supply chain, including further limiting our concentration of product purchases for the substantial majority of our U.S. operations within any single country outside the U.S.,” according to The Home Depot’s SEC filing.
“We believe these actions, along with our scale, vendor relationships, and experienced internal teams, position us to effectively mitigate the impact that tariffs in effect as of the date of this filing could have on our business, as well as allow for maximum flexibility as our global sourcing strategies evolve,” the filing continued.