EastGroup Properties Acquires Three-uilding Complex in San Diego, CA $17M

JACKSON, MS--EastGroup Properties (NYSE-EGP) announced the acquisition of the Ocean View Corporate Center in San Diego, California for a purchase price of $17,000,000.

Located in the Otay Mesa submarket, (bottom left map)  Ocean View contains 274,000 square feet in three, multi-tenant business distribution industrial buildings.

Constructed in 2005, the complex is presently 87% leased to 14 customers. Ocean View is projected to generate an annualized yield of 9.6% at its current occupancy and rents.

David H. Hoster II, (top right photo)  President and CEO, stated, "Ocean View is a recently developed, state-of-the-art industrial complex that closely fits our business distribution criteria. This acquisition, which is at a price 20-25% below replacement cost, increases our ownership in the south San Diego market to 465,000 square feet.

"Ocean View represents our fourth purchase in the last nine months and brings our total of newly invested capital to approximately $40 million over that period. We continue to seek additional investment opportunities."

Contact:

David H. Hoster II, President and Chief Executive Officer
N. Keith McKey, Chief Financial Officer, 601) 354-3555