"We just read to see where projected growth was and where the most stable growth was taking place," he explains. "We looked to see where the cost of doing business and cost of living are at or below the national average, then to see which areas had a good quality of life and good feeder schools. It turned out to be the Southeast."

Depending on market conditions and availability of capital, San Filippo says Crown anticipates acquiring a total of $300 million to $500 million of properties over the next 18 months. Most will be core and value-add industrial properties in the Southeast. Initially, the company plans to concentrate on investment rather than development.

"We believe at some point we will add our development group to our mix, but as of yet we've not done that," he says. "Development is a higher risk, and we want to get comfortable with the market first." Despite the aggressive entry, San Filippo maintains Crown is content to remain a comparatively small player for the time being. "We'd like to spend a little more time getting acquainted with the region and making ourselves known rather than taking on too much," he says.

San Filippo calls the Imperial Center portfolio a premier example of the kind of property Crown is looking for. He describes the target product as "high-quality, well-located, functional real estate." He lists the target markets as the Piedmont-Interstate 85 corridor from Atlanta through Charlotte and Raleigh-Durham, NC, the Memphis-Nashville area and north Florida. "We particularly like the Southeast port markets of Charleston, Wilmington, Savannah and Jacksonville," he says. "We will also be spending time looking at other markets in Florida and a few in Texas."