EastGroup Buys 1.15MSF Industrial Portfolio in Tampa
- Dec 27, 2011
EastGroup Properties has officially announced the acquisition of an industrial portfolio consisting of 16 buildings in Tampa. The 16 properties encompass approximately 1.2 million square feet and was previously owned by Prologis.
According to an official release, following the eventual disposition of six non-core buildings, EastGroup will retain 1.1 million square feet, with a projected total investment of approximately $55.4 million, which includes estimated first-year capital improvements. The core portfolio is currently 92 percent leased and is projected to generate an annualized 7.3 percent yield at a stabilized occupancy of 95 percent.
“This portfolio acquisition increases EastGroup’s ownership to 3.9 million square feet in the market and makes us the largest industrial owner-operator in Tampa,” declared David Hoster II, EastGroup president & CEO. “These newly acquired business distribution assets complement our existing properties in Tampa’s two primary infill industrial submarkets, which historically have averaged higher occupancies than the overall metro Tampa industrial market. We now own over 9 million square feet in Florida.”
EastGroup Properties Inc. is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States, with an emphasis in the states of Florida, Texas, Arizona and California. Its goal is to maximize shareholder value by being the leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers primarily in the 5,000 to 50,000 square foot range.