CLEVELAND—The Oak Brook-based Inland Real Estate Corporation, a real estate investment trust that focuses on buying retail property in the Midwest, has joined with its frequent partner PGGM, a Dutch pension fund adviser, to purchase Cedar Center South, a 139,000-square-foot shopping center located in University Heights, a suburb of Cleveland, Ohio, for a purchase price of $24.9 million. A 45,300-square-foot Whole Foods grocery store – one of two serving all the eastern Cleveland metropolitan area- anchors the center.
“We are executing on our strategy to enhance the long-term growth potential of our portfolio through the acquisition of retail assets with credit-worthy tenancy, strong demographics and excellent market position,” says Scott Carr, chief investment officer for Inland. “Further, by acquiring the center through our PGGM joint venture, we are utilizing our capital efficiently and achieving an attractive return on investment.”
Just last month, GlobeSt.com reported that the same partnership had purchased three Walmart-anchored shopping centers in the Milwaukee area for a total purchase price of $24.2 million.
Cedar Center also has a 12,100-square-foot CVS/pharmacy. Both CVS and Whole Foods have long-term leases that Inland officials say will provide a stable income stream. The center also includes a mix of other national and local retailers. But with an 83% occupancy, the company also expects it can boost the center's value with a leasing initiative.
Including Cedar Center South, Inland now has an ownership interest in four retail centers totaling more than 592,000-square-feet of space within the Cleveland metro area.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
