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Mississippi-based EastGroup has acquired California-based Tulloch Corp., picking up properties in San Francisco and Sacramento.
The total industrial portfolio purchased encompasses 14 properties totaling 1.7M SF, along with two land parcels adding up to 10.5 acres. The properties are completely leased. EastGroup intends to develop a further 215K SF on the parcels.
The portfolio was acquired for 1.87 million shares of EastGroup stock at $190 per share. EastGroup will also be assuming a $60M loan.
"We are thrilled to add the Tulloch Corporation's San Francisco area portfolio to EastGroup," EastGroup CEO Marshall Loeb said in a release announcing the purchase, which is heavily centered in the San Francisco metro. "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."
Loeb said he was bullish on the company's 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," he said.
EastGroup now owns 7.6M SF in California. This year, it sold a 42K SF service center in Houston for $13M, and the company last year announced a 380K SF industrial project in McKinney, outside of Dallas, Bisnow reported.
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