EastGroup Acquires Two Charlotte Buildings for $22.4 Million

EastGroup Properties today announced two acquisitions in separate transactions in Charlotte, North Carolina. Lakeview Business Center ($7,000,000) is a 127,000 square foot business distribution building located in Charlotte’s north submarket. Built in 1996, this state-of-the-art facility is 100% leased to three customers and is projected to generate a first year cash yield of 7.2%.

Ridge Creek Distribution Center II ($15,350,000) is a 300,000 square foot multi-tenant, state-of-the-art, bulk distribution building located in the southwest submarket in a park containing another EastGroup property. Constructed in 2003, Ridge Creek II is 100% leased to two customers and is projected to have a first year stabilized cash yield of 7.6%.

David H. Hoster II, President and CEO, stated, “The acquisition prices of Lakeview and Ridge Creek are both below replacement costs, and the assets are located in attractive and proven infill submarkets. They increase our Charlotte area ownership to over 2.2 million square feet which are currently 94.5% leased.”

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. 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 29 million square feet.

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John B. Marek is an innovative marketing and economic development professional with more than 25 years combined experience in the industrial, retail, technology and public sectors. www.johnbmarek.com