EastGroup Properties (EGP) closes $415 million portfolio acquisition.

EastGroup Properties, Inc. (EGP) announced that it has closed on the acquisition of Tulloch Corporation, a privately held entity which owns a 14-property portfolio located within the San Francisco and Sacramento markets.  The portfolio is 100% leased to 37 tenants and generates approximately $17.1 million of in-place NOI.  The purchase price included 1.87 million shares of EGP common stock valued at $190/share and the assumption of $60 million in debt.  The going-in cap rate is approximately 4.1% based on total consideration of approximately $415 million.

Commenting on the Company's activity, Marshall Loeb, CEO, stated, "We are thrilled to add the Tulloch Corporation's San Francisco area portfolio to EastGroup. The Tulloch family, over three generations, built a very strong portfolio in terms of location, building quality and tenant quality. Within our own portfolio, San Francisco has historically been one of our strongest markets and also one where we've been under allocated capital-wise. We're very bullish about the future for our San Francisco portfolio. Given recent headlines and resulting levels of concern, we are pleased to continue seeing strong levels of tenant demand across our portfolio as evidenced by our month end results."

EastGroup Properties is an established industrial REIT focusing on Sunbelt markets across the U.S. As of March 31, 2022, the operating portfolio included properties with approximately 47.4 million square feet, with an additional 4.7 million square feet in development and lease-up. Key markets for EGP include Houston, Dallas, Tampa, Orlando, Charlotte, Phoenix, and Los Angeles. EGP is a member of the S&P MidCap 400 index with a total market capitalization of approximately $9.9 billion.