OAK BROOK, IL—Inland Real Estate Income Trust, Inc. has just signed an agreement to purchase a 15-property portfolio of retail centers located across eight states, totaling approximately two-million-square-feet, from Kite Realty Group Trust. At an estimated purchase price of $318 million, it will be the largest portfolio purchase that Inland Income Trust has made. Company officials expect the transaction to close in two tranches on or before December 15, 2014 and March 16, 2015, respectively.
Although the deal comes on the heels of a $2.1 billion merger between Kite Realty and Inland Diversified Real Estate Trust, Inc., it was not part of those negotiations, an Inland spokesperson told GlobeSt.com.
“Kite's decision to sell these properties was a unique opportunity for Inland Real Estate Income Trust to acquire high quality assets in an off-market, negotiated transaction,” the spokesperson said. “Since the properties were previously owned by Inland Diversified, the Inland Real Estate Income Trust management team is familiar with the shopping centers and the markets where they are located,” which resulted in lower broker and due diligence costs.
Kite officials say that although the move was not part of the merger, they have been considering selling off such assets for some time. “Since well before the closing of the merger with Inland Diversified in early July, we have been diligently evaluating the geographic and demographic composition of our recently expanded portfolio,” said John Kite, chairman and chief executive officer of the Indiana-based Kite.
“The properties we will be selling to Inland Income Trust represent assets that we consider to be non-core based upon our geographic objectives as we are looking for opportunities to increase our scale in select markets, consistent with our strategy," he added. "We look forward to redeploying the proceeds from these sales into assets that are more in line with our long-term strategic objectives and will add additional shareholder value.”
The portfolio includes grocery and power centers and is 96.14% leased to 174 tenants. Inland Real Estate Acquisitions, Inc., which purchased these properties for Inland Diversified, assisted Inland Income Trust with both identifying the retail portfolio and negotiating the purchase. In 2014, the trust has already purchased 8 properties for approximately $221 million.
The following operating properties will be included in the transaction:
1. Eastside Junction, Athens, AL
2. Harvest Square, Harvest, AL
3. Prattville Town Center, Prattville, AL
4. Fairgrounds Crossing, Hot Springs, AK
5. Heritage Square, Conyers, GA
6. Regal Court, Shreveport, LA
7. The Shoppes at Branson Hills, Branson, MO
8. Branson Hills Plaza, Branson, MO
9. Shoppes at Hawk Ridge, Lake St. Louis, MO
10. Whispering Ridge, Omaha, NE
11. Landing Ocean Isle Beach, Ocean Isle, NC
12. Walgreens Plaza, Jacksonville, NC
13. Copps Grocery Store, Stevens Point, WI
14. Fox Pointe, Neenah, WI
15. Shoppes at Prairie Ridge, Pleasant Prairie, WI
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
