TAMPA, FL-Orlando-based Capital Realty Investors LLC has sold a four-year-old, 112,000-sf distribution building to Jackson, MI-based EastGroup Properties. The property has been 100% occupied by Towson, MD-based Black & Decker Corp. for the past four years. The $7.35-million price equates to $65.63 per sf.
The property, renamed Oak Creek IV, is at 8322 Eagle Palm Dr. within the 258-acre Parkway Center Business at Oak Creek office and industrial development in suburban Riverview, Hillsborough County. The class A light manufacturing and warehouse facility was constructed as a build-to-suit for Black & Decker in 2001.
Brad C. Luger, and Larry Randolph, executive directors in the Tampa office of Advantis Real Estate Services Co., negotiated the deal for the seller. EastGroup president and CEO David H. Hoster II represented his firm.
Hoster says the purchase includes land to accommodate a 46,000-sf expansion. In a prepared statement, he says Oak Creek IV is projected to generate an unleveraged cash yield of 8.4% at 100% occupancy. As part of the deal, EastGroup assumed the property's outstanding first mortgage balance of $4.1 million. The non-recourse mortgage has a fixed interest rate of 7.26% and matures in 2012.
The acquisition "complements EastGroup's growing presence" in the Parkway Center Business park located in the East Tampa-Interstate 75 corridor submarket, Hoster says. The acquisition increases the REIT's ownership in the park to three building totaling 461,000 sf.
The company also has Oak Creek III, a 61,000-sf building, under construction and 61 acres for future development, the EastGroup chief says. The REIT owns 1.2 million sf in the East Tampa submarket and 2.3 million sf in metro Tampa.
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