JACKSON, Miss., March 5 /PRNewswire-FirstCall/ -- EastGroup Properties, Inc. today announced the acquisition of Fairgrounds Business Park, four business distribution buildings in San Antonio, Texas for a purchase price of $10,550,000. The buildings, which were constructed in 1985 and 1986, contain a total of 231,000 square feet and are located in the Alamo Downs Business Park. The multi-tenant properties are currently 80% leased to six customers and are projected to generate a 9.1% stabilized unleveraged cash yield at 95% occupancy.
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David H. Hoster II, President and CEO stated, "The acquisition of Fairgrounds Business Park is EastGroup's fourth investment in San Antonio and increases our ownership to 1,375,000 square feet including two properties under development. Fairgrounds is in the northwest submarket of San Antonio and complements our Alamo Downs Distribution Center (253,000 square feet, 100% leased) which is in the same business park."
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 22.4 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/.
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