EastGroup Properties Acquires Three Building Complex in San Diego for $17 Million
January 29 2010 - 1:16PM
PR Newswire (US)
JACKSON, Miss., Jan. 29 /PRNewswire-FirstCall/ -- EastGroup
Properties (NYSE:EGP) today announced the acquisition of the Ocean
View Corporate Center in San Diego, California for a purchase price
of $17,000,000. Located in the Otay Mesa submarket, Ocean View
contains 274,000 square feet in three, multi-tenant business
distribution industrial buildings. Constructed in 2005, the complex
is presently 87% leased to 14 customers. Ocean View is projected to
generate an annualized yield of 9.6% at its current occupancy and
rents. (Logo: http://www.newscom.com/cgi-bin/prnh/20030519/EGPLOGO
) David H. Hoster II, President and CEO, stated, "Ocean View is a
recently developed, state-of-the-art industrial complex that
closely fits our business distribution criteria. This acquisition,
which is at a price 20-25% below replacement cost, increases our
ownership in the south San Diego market to 465,000 square feet.
Ocean View represents our fourth purchase in the last nine months
and brings our total of newly invested capital to approximately $40
million over that period. We continue to seek additional investment
opportunities." EastGroup Properties, Inc. is a self-administered
equity real estate investment trust focused on the acquisition,
development 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. The Company's 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. The Company's strategy for growth is
based on ownership of premier distribution facilities generally
clustered near major transportation features in supply-constrained
submarkets. EastGroup's portfolio currently includes 28.1 million
square feet. Certain statements in this release are forward-looking
and as such are based upon the Company's current belief as to the
outcome and timing of future events. There can be no assurance that
future developments affecting the Company will be those anticipated
by the Company. These forward-looking statements involve risks and
uncertainties (some of which are beyond the control of the Company)
and are subject to change based upon various factors, including but
not limited to the following risks and uncertainties: changes in
the real estate industry and in performance of the financial
markets; the demand for and market acceptance of the Company's
properties for rental purposes; the amount and growth of the
Company's expenses; tenant financial difficulties; and general
economic conditions, including interest rates, as well as economic
conditions in those areas where the Company owns properties, the
risks associated with the development of real property, and other
risks and uncertainties detailed from time to time in the Company's
SEC filings. Should one or more of these risks or uncertainties
occur, or should underlying assumptions prove incorrect, the
Company's results could differ materially from those expressed in
the forward-looking statements. EastGroup Properties, Inc. press
releases are available on the Company's website at
http://www.eastgroup.net/.
http://www.newscom.com/cgi-bin/prnh/20030519/EGPLOGODATASOURCE:
EastGroup Properties, Inc. CONTACT: David H. Hoster II, President
and Chief Executive Officer, or N. Keith McKey, Chief Financial
Officer, +1-601-354-3555 Web Site: http://www.eastgroup.net/
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