EastGroup buys Prologis portfolio, is Tampa's largest industrial owner

BUYER: EastGroup Properties LP

SELLER: Prologis IV LLC

PROPERTY: 5206 W. Waters Ave., 5036 and 5028 Tampa West Blvd., 5001 Tampa West Blvd., 1325 Massaro Blvd., 121 and 207 Kelsey Lane and 5120 E. Adamo Drive, Tampa

PRICE: $56.62 million

PREVIOUS PRICE: $1.66 million, October 1994

LAW FIRM ON DEED: Christianne C. Chen Esq., San Francisco

PLANS, DESCRIPTION: Jackson, Miss.-based EastGroup Properties purchased an industrial portfolio of 16 buildings in Tampa from Prologis. The company says that, after divesting itself from six non-core buildings, it will retain a total of 1.08 million square feet from the portfolio for $55.4 million, which includes estimated first year capital improvements. The purchase price equated to $48 per square foot. However, a single deed filed on Dec. 20 lists the value of the transfer of nine properties at $56.62 million.

EastGroup Properties says the core portfolio is currently 92% leased and is projected to generate an annualized 7.3% yield at a stabilized occupancy of 95%.

The purchase was expected to increase EastGroup Properties' holdings in Tampa to 3.9 million square feet, making it the largest industrial owner in the market.

EastGroup Properties and Prologis officials declined to comment on other specifics of the purchase.

EastGroup Properties Inc. is a self-administered equity real estate investment trust focused on industrial properties in the major U.S. Sunbelt markets, especially in Florida, Texas, Arizona and California. Following the deal, EastGroup Properties owns more than 9 million square feet of real estate in Florida.