EastGroup tackles Texas industrial deals in first half of 2022

Company spent $19.5 million on Texas spec projects and sold one Houston property for $13.3 million in Q2

EastGroup president and ceo Marshall A. Loeb (East Group, Illustration by The Real Deal with Getty)
EastGroup president and ceo Marshall A. Loeb (East Group, Illustration by The Real Deal with Getty)

Texas’ booming industrial markets have gotten a lot of attention so far this year from EastGroup Properties, which specializes in Sun Belt industrial developments.

The Dallas and Houston markets combined account for more than 20 percent of industrial square footage currently under construction nationwide, and the Mississippi-based REIT is a big part of Texas’ industrial construction boom.

EastGroup, which invests in the Arizona, California, Florida and Texas markets, made land buys and sales, and started construction projects across the Lone Star State during the first half of 2022.

EastGroup spent a total of $19.5 million picking up land in Houston and San Antonio for future development.

Leading the way was the company’s purchase of 46 acres in Houston’s master-planned Cypress Preserve Logistics park for $14.7 million, which EastGroup acquired as a “50 percent leased value-add opportunity” in March 2022. Over time, the company plans to build six buildings totaling 670,000 square feet, according to its second-quarter earnings report.

EastGroup bought an undeveloped 18-acre site in San Antonio for $4.8 million in July. The company plans to build three buildings totaling 225,000 square feet of space.

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In May, EastGroup sold a 42,000 square-foot Houston service center warehouse for $13.3 million, which netted the company a $10.6 million profit.

In August, Houston-based NAI Partners arranged on behalf of EastGroup a 24,000 square-foot lease to PCI Promatec, a company that provides fire protection equipment for commercial nuclear plants and U.S. Dept. of Energy facilities. The terms of the lease were not disclosed.

EastGroup also noted three Texas industrial projects currently underway.

The company has spent $19.1 million so far developing World Houston 47, a 139,000-square-foot project which is set to be completed in December 2022

EastGroup has put $33.3 million towards developing Springwood 1 & 2, a 292,000-square foot warehouse, scheduled to be completed in May 2024.

EastGroup has spent $10.3 million thus far developing Arlington Tech 3 in Fort Worth, a 77,000-square-foot industrial building slated to be finished in October 2023.

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