EastGroup Properties acquired 61 acres of land for $27 million, with plans to develop an 850,000 square foot industrial park in Dade County, Miami Gardens, Florida. The parcel has frontage along the Florida Turnpike and is adjacent to the Calder Casino and Race Course and Hard Rock Stadium home of the Miami Dolphins.
According to company officials, EastGroup also acquired for $14 million the 134,000 square foot Weston Commerce Park in Weston, Florida, located in Southwest Broward County. Weston, which was developed in 1998, is currently 29% leased. The property will undergo a redevelopment to covert to multi-tenant use and, as such, will be a part of the Company's development pipeline, officials said.
In addition in the southwestern U.S., EastGroup is under contract to purchase Jones Corporate Park in Las Vegas, Nevada for $42 million. The property, which was completed earlier in 2016, consists of two buildings totaling 416,000 square feet and is presently 50% leased to three customers. The Company expects to close on the acquisition in mid-November. EastGroup will consider Jones as part of its development pipeline until the earlier of 80% occupancy or April 2017, which is one year after shell completion.
Marshall Loeb stated, "We are pleased to purchase these two value-add development properties. They will allow us the opportunity to earn above-market yields upon lease-up within two fast growing metro markets where we have strategically been trying to grow our footprint. We are also excited about the long term growth opportunity the Calder site presents given its strategic location at a freeway interchange within the fast growing, land constrained Dade County market."
“The Company's strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets,” a company spokesman said.
EastGroup Properties, Inc. is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis on Florida, Texas, Arizona, California and North Carolina.