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OAK BROOK, IL-The world's largest retailer may not be popular with Chicago city officials, who have stalled plans to build Wal-Mart stores on the South and West sides. However, Wal-Mart is still favored by Inland Western Retail Real Estate Trust, which has paid $11 million for a 149,704-sf store in Jonesboro, AK.
Wal-Mart has a triple-net lease on the store, located about 70 miles northwest of Memphis. Efforts by Wal-Mart to build in the city have been thwarted by objections from labor unions, who claims the retailer pays below-par wages that drive smaller competitors out of business.
"We are Wal-Mart's largest private landlord, so we're very familiar with this tenant," says Inland Real Estate Acquisitions chairman Joe Cosenza, who negotiated with Belz-Burro Ridge Park, LP for the retail REIT. "We always welcome the opportunity to sign a long-term triple-net lease with Wal-Mart in a quality property like this."
Meanwhile, the rapidly growing Inland Western Retail REIT--it has averaged at least one acquisition a week during the past year--also has paid $3 million for a 10,055-sf asset in Sylacauga, AL leased to pharmacy giant CVS, which has surpassed 5,000 stores. "They are currently on an up-trend," says Inland Western's Ed Rowe. "And as they've signed a 25-year lease we expect them to be a solid tenant for many years yet."
The sellers, Joseph R. McElroy and 3T, LLC, were represented by Kathy Chadd. The property is about 51 miles southeast of Birmingham and 67 miles north of Montgomery.
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