EastGroup Pays $5M for Tampa Asset

TAMPA, FL-EastGroup Properties, a publicly traded REIT based in Jackson, MI, has picked up a two-year-old, 127,000-sf industrial property for $4.7 million, or $36.61 per sf. The acquisition price is about equal to the estimated replacement cost of the property, Oak Creek Distribution Center, area construction industry estimators tell GlobeSt.com.

EastGroup president and CEO David H. Hoster II calls the asset “a state-of-the-art, multi-tenant business distribution building which is adjacent to our Premier Beverage property” in the east Tampa-Interstate 75 submarket.

The property was 46% leased when it was placed under contract and is now 84% leased, Hoster says. The acquisition brings EastGroup’s local portfolio to two million sf of owned properties. The REIT owns a total 19.3 million sf nationally with an additional 604,000 sf under development.

Hoster projects Oak Creek Distribution Center will generate an unleveraged stabilized yield on leaseup of about 10.7%.