EastGroup Properties, a real estate equity investment group, announced it has entered an agreement with Dallas-based Dal-Tile Corp. to develop a 64,000 sq. ft. distribution facility for the company in San Antonio, Texas.

The new warehouse, which will be located in EastGroup's Arion Business Park within driving distance of the San Antonio airport, carries a projected investment of $4.2 million and is scheduled to be completed in the first quarter of 2007.

Upon completion, the new facility will be Dal-Tile's fifth distribution warehouse and its second distribution hub in Texas. The company also operates distribution centers in Sunnyvale, Texas; Eldersburg, Md.; Ontario, Calif.; and Boling Brook, Ill. Additionally, the tile maker operates nine manufacturing plants in the U.S. and a location in Monterrey, Mexico.