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EastGroup Buys Industrial Property for $4M

HOUSTON-EastGroup Properties has paid $4.2 million in cash for the 125,000-sf Kirby Business Center in south Houston. The 100% occupied building is expected to generate an unleveraged yield of 9.5%.

By Jennifer Brenner Andrade | Updated on March 25, 2004

HOUSTON-The Kirby Business Center at 9350 South Point Dr. in south Houston has been sold to EastGroup Properties, a Jackson, MS-based REIT, for $4.2 million. David H. Hoster II, president and CEO of EastGroup, tells GlobeSt.com that the REIT has paid cash for the 125,000-sf distribution building, which is projected to generate an unleveraged yield of approximately 9.5%.

According to records at the Harris County Appraisal District, the 24-year-old property was sold by Kern Associates LP, an entity managed by Hill Partners Management Co. of Austin. Executives at Hill Partners could not be reached for comment. Mike Handel of locally based InSite Commercial Real Estate currently leases the 100% occupied project, and according to Hoster, EastGroup plans to manage the property internally while keeping InSite on as the leasing agent.

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