JACKSON, Miss., Jan. 2 /PRNewswire-FirstCall/ -- EastGroup Properties today announced the sale of two properties in December in separate transactions. The Company's Auburn Hills building (114,000 square feet), a single tenant office/R&D facility located in the Detroit, Michigan metro area, was sold for a price of $17,850,000. The sale generated a gain of approximately $4,500,000.
EastGroup also sold its Crowfarn Distribution Center (106,000 square feet) in Memphis for $2,750,000 which generated a gain of approximately $400,000. This transaction reduced the Company's ownership in Memphis to 264,000 square feet with a net investment of less than $5,000,000.
David H. Hoster II, President and CEO stated, "The sales of Auburn Hills and Crowfarn are part of our ongoing strategy to dispose of non-core assets as market conditions permit. Both of these properties were originally acquired through a merger, and the sale proceeds will be reinvested in new development and core market acquisitions."
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 in the states of California, Florida, Texas and Arizona. Its strategy for growth is based on its property portfolio orientation toward premier business distribution facilities clustered near major transportation features. EastGroup's portfolio currently includes 21.7 million square feet with an additional 1.5 million square feet of properties under development.
Certain statements in this release are forward-looking and as such are based upon the Company's current belief as to the outcome and timing of future events. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. These forward-looking statements involve risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors, including but not limited to the following risks and uncertainties: changes in the real estate industry and in performance of the financial markets; the demand for and market acceptance of the Company's properties for rental purposes; the amount and growth of the Company's expenses; tenant financial difficulties; and general economic conditions, including interest rates, as well as economic conditions in those areas where the Company owns properties, the risks associated with the development of real property, and other risks and uncertainties detailed from time to time in the Company's SEC filings. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Company's results could differ materially from those expressed in the forward-looking statements.
EastGroup Properties, Inc. press releases are available at http://www.eastgroup.net/.
