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JV to Develop $250M of Nationwide Retail

CHICAGO-Interra-Vision Development LLC and Prudential Real Estate Investors will have an initial commitment of $50 million in a joint venture to develop retail projects.

By Gina Kenny | Updated on April 30, 2007

CHICAGO-Interra-Vision Development LLC, a retail developer based here, and Prudential Real Estate Investors, based in Parsippany, NJ, are forming a joint venture, called Interra Development Partners LLC, to develop retail and build-to-suit projects. The build-to-suit projects will be for national retailers such as Walgreen’s, Chase, Bank of America and Best Buy, says Tom Gamsjaeger, president of Interra Development Partners LLC and co-owner of Interra-Vision.

Interra-Vision and PREI will initially contribute a total of $50 million, Gamsjaeger says. The joint venture is expected to fund $250 million of projects. The joint venture will develop projects for the next two to three years but, based on the current planned projects, “we will probably do it faster than that,” he says. “The joint venture allows us access to capital which allows us to be competitive in acquiring those locations that meet our current target,” he says. Some of the infill locations “tend to be very competitive locations with a lot of developers chasing the same deal.”

Interra Development Partners will focus on “high-growth” areas. In the west, the joint venture will focus on the San Francisco Bay Area; California’s Central Valley, including Sacramento and Stockton; and San Diego County, Orange County and Riverside County in California. The joint venture will also focus on Miami and Dade County in Southeast Florida and the Midwest, including the Chicago Metro area, Indiana, Ohio and Michigan. “We were looking at markets that offered good growth prospects, barriers to entry, strong demographics and employment growth,” Gamsjaeger says.

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