OAK BROOK, IL—Inland Real Estate Corporation, a publicly-traded REIT that owns and operates retail centers in the Midwest, and its joint venture partner PGGM, a Dutch pension fund advisor, have just acquired a portion of Newport Pavilion, a 471,800-square-foot grocery-anchored power center, located in suburban Newport, KY, just across the Ohio River from downtown Cincinnati. The partners paid $43.3 million in cash for Phase I of the center, which has 222,300-square-feet of retail space including ground leases. Kroger Marketplace, Michaels, PetSmart, Ulta, Famous Footwear, Chick-fil-A and others lease about 98% of the space. The center also includes a separately-owned 134,500-square-foot Target store.
“Newport Pavilion is an outstanding addition to our necessity and value-based retail portfolio, representing best-in-class new power center development, with leading national retailers in a high-barrier-to-entry infill location,” says Mark Zalatoris, president and chief executive officer of Inland Real Estate Corporation. “Our acquisition of this 'class A' Kroger-anchored power center in Ohio's largest metropolitan area enhances the geographic and tenant diversification of our portfolio, and represents an accretive re-deployment of proceeds from recent dispositions of non-core assets.”
The venture also has Newport Pavilion Phase II under contract for about $23.8 million, and expects to close that acquisition before the end of the year. Dick's Sporting Goods, TJ Maxx, Buffalo Wild Wings and others lease about 115,000-square-feet of space in this portion of the center.
Target and Kroger and the shop space next to Kroger were built in 2010, and the rest of the completed retail space was constructed in 2013 and 2014. The center has quick access to I-471, a major artery serving commuters from Northern Kentucky and Cincinnati's eastern suburbs, and is the closest major retail center serving the downtown and nearby affluent neighborhoods.
As of March 31, 2014, the company owned interests in 138 investment properties, including 29 owned through its unconsolidated joint ventures, with leasable space of about 15-million-square-feet.
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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.
