JV to Develop Up to $400M in Centers

OAK BROOK, IL-Inland Real Estate Corp., based here, is forming a joint venture with Pine Tree Institutional Realty LLC, headquartered in Northbrook, IL, to develop shopping centers. The joint venture has agreed to develop $100 million in new shopping centers per year for the next four years, says Mark Zalatoris, chief operating officer for Inland Real Estate Corp.

Pine Tree Commercial Realty LLC, an affiliate of Pine Tree Institutional Realty LLC, will handle site selection, acquisition, development and some leasing services. Besides providing capital, Inland will assist with leasing for “mid-box and local small tenants,” Zalatoris says. Developers tend to specialize more in signing the major big box tenants with it “taking a little bit long to completely lease up the center with complimentary smaller tenants,” he says. “Jointly, we can complete the development faster.”

The shopping center developments will primarily be in the Midwest and will generally range in size from 75,000 sf to 300,000 sf, and three projects are already planned for this year. The joint venture recently closed on land in Fort Wayne, IN. The approximate $37 million development will be about 300,000 sf and have a “big box” anchor that will occupy approximately 100,000-sf, Zalatoris tells GlobeSt.com. Zalatoris says they were still in discussions with an anchor and could not disclose the retailer. Construction should commence this summer with the first main tenant to open late this year or early next year. The joint venture is also “actively pursuing” developments in suburban Indianapolis and St. Joseph, MO.