(For more retail coverage, click GlobeSt.com/RETAIL.)
CHICAGO-Inland Real Estate Corp., through its joint venture with New York State Teachers Retirement System, has already hit the halfway mark in its plan to invest $400 million-plus in retail assets by yearend. Speaking at the Credit Suisse Real Estate Conference 2006 in New York City Thursday, executives spelled out the progress the company has made thus far, and discussed new endeavors for its most prosperous joint venture.
Since lining up with the NYSTRS in October 2004, a total of $280 million has been reached. Executives note that the "crown jewel" of those investments has been Algonquin Commons, which was purchased for $154 million.
While Inland has remained focused in and around the Chicago market, Mark Zalatoris, Inland executive vice president and COO, said NYSTRS has expressed interest in the Texas market. "It redefines our 400-mile radius, but we said 'yes, we'll go do that with you,'" Zalatoris said. He went on to say that "there's about $200 million in additional centers that we'll be looking to acquire in next year and a half."
Zalatoris said the company is "anticipating a big year with NYSTRS." Currently, the joint venture is in negotiations for 14 properties and has six assets under contract, Zalatoris noted. "Sellers are repeat sellers to us because they have had good experience with the way we buy properties," he told conference attendees.
Inland chief financial officer Brett A. Brown and president of property management D. Scott Carr also spoke at the conference, giving attendees further detail on Inland's management and acquisition structure. Carr noted that while no one retailer makes up more than 4.4% of Inland's annual base rent, that statistic will change with SuperValu's purchase of Alberston's. Once that transaction is complete, SuperValu will bring in 7% of the rental total.
Inland Real Estate Corp. is a self-administered and self-managed publicly traded real estate investment trust that owns interests in 146 neighborhood, community, lifestyle and single-tenant retail centers located primarily in the Midwest.
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