(For more retail coverage, click GlobeSt.com/RETAIL.)
ROCHESTER, MN-Inland Real Estate Corp. has purchased Apache Shoppes, a 60,780-sf community center for $12.3 million. The Oak Brook, IL-based REIT also agreed to pay approximately $1 million in future contingent payments to seller True North Investments once currently vacant space is leased.
An Inland spokesman tells GlobeSt.com that the company was able to buy the property at a cap rate above the current market average. Since the contract was negotiated a year before close, Apache Shoppes was acquired at a "7 cap in a 6 cap environment," he says.
True North Investments, the original developer of Apache Shoppes, has recently completed an expansion and renovation of the property. The center is currently 94% leased and major tenants include Cost Plus World Market and Linens N Things. True North Investments is marketing the 3,000-sf vacancy to prospective tenants.
Location made the property an attractive buy for Inland, which currently owns and manages 146 neighborhood, community and single-tenant retail centers in the Midwest, the spokesman says. At Highway 52 and 16th St. SW, Apache Shoppes is right across the street from the Apache Mall, a major regional mall, the spokesman says. Owned by General Growth properties, the 752,000-sf Apache Mall is anchored by Herberger's, JC Penney, Macy's and Sears.
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