Aug
26

427,000 SF of Distribution Space Sold in Charlotte

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EastGroup Properties has spent $22.35 million to add two properties to its Charlotte-area portfolio, nudging its investment in the market to more than 2.2 million square feet.

The Jackson, Miss.-based REIT has deployed $15.35 million on the 300,000-square-foot Ridge Creek Distribution Center in the southwest submarket and $7 million on Lakeview Business Center in the city’s northern tier. “The acquisition prices of Lakeview and Ridge Creek are both below replacement costs,” said David H. Hoster II, president and CEO. The REIT’s local portfolio is 94.5 percent leased.

EastGroup, with a penchant for clustering properties, owns a bulk distribution center close to the Ridge Creek building, which is fully leased to two tenants. The new owner is predicting a first-year stabilized cash yield of 7.6 percent. The center delivered in 2003.

Lakeview Business Center is a fully leased 127,000-square-foot building. There are three tenants in the building, developed in 1996. The buyer is projecting a 7.2 percent first year cash yield.

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