The firm recently has acquired a fully leased structure along the Stemmons Freeway, where it is clustering holdings in keeping with the REIT's strategy. The latest acquisition, 11070-11090 N. Stemmons Freeway, had been developed in 1979 by Jackson-Shaw Co., Jan Puckett, EastGroup's vice president, tells GlobeSt.com. According to tax records, California State, with an office at 14000 Halsey Way, Carrollton, had been the property owner.

The 22-year-old building pumps another 122,570 sf into EastGroup's near 1.3-million sf Dallas-Ft. Worth portfolio, says David H. Hoster II, president and CEO. And, more properties in all of EastGroup's Sunbelt markets are being sought. "We will probably spend another $40 million to $50 million this year for industrial properties," he tells GlobeSt.com. "We're always looking for more."

Stemmons North, situated in the Walnut Business Park, is positioned about a mile away from EastGroup's Interstate Distribution Center three-building complex, consisting of 133,959 sf, 133,959 sf and 78,332 sf. The holdings are near Loop 12, Interstate 35 and Northwest Highway in the city's northwest submarket. EastGroup had bought two of the buildings in 1988 and the third just last year.

Puckett says EastGroup, where possible, will holdings to benefit from the ability to move tenants from one structure to another. "It works well for us," she says. And so it must since the holdings had been 100% leased until December when Designer Accent had pulled out of about 93,000 sf in Interstate Distribution Center II. Immediately, a tenant had been signed to 65,000 sf, with 28, 000 sf remaining vacant to date. Another 12,300 sf is all that's open in Interstate I. Bradford Cos. manages the REIT's holdings in the region.

The newest buy will be undergoing some cosmetic changes, but that's about all that is needed, says Puckett. The building comes with four tenants and lease rollovers that are staggered for the next five years, she says. The purchase is projected to generate a first-year cash yield of approximately 10.1% and a straight-line rent yield of 10.3%.