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.
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 www.eastgroup.net.
SOURCE EastGroup Properties, Inc.