The Mississippi REIT is assuming a first mortgage balance of $4.7 million as part of the acquisition price. EastGroup president and CEO David H. Hoster II didn't identify the seller but says in a prepared statement the two-building center is projected to generate an unleveraged cash return of 9.3% at 100% occupancy. The assumed non-recourse mortgage has a fixed interest rate of 6.9% and matures in 2013.
Hoster says the acquisition "increases our cluster of assets in this submarket to 890,000 sf and our ownership in Jacksonville to 1.765 million sf." He says Interstate Distribution Center, leased to seven tenants, is "strategically located" along Interstate 95, about one-quarter mile from the REIT's Lake Pointe Distribution Center in Jacksonville's Southside submarket.
EastGroup's national portfolio totals 21.2 million sf with an additional 584,000 sf under development.
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