Inland Set to Acquire 15-Property Retail Portfolio for $318M

Shoppes at Hawk Ridge, St. Louis

By Keith Loria, Contributing Editor

Inland Real Estate Income Trust Inc. has signed a definitive agreement to acquire a 15-property portfolio of retail centers located across eight states for an estimated $318 million from Kite Realty Group Trust.

“We know this portfolio quite well, as these properties were underwritten, acquired and managed by Inland-affiliated companies,” Mitchell Sabshon, Inland Real Estate Income Trust’s CEO, told Commercial Property Executive. “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 properties are a combination of grocery and power centers that are collectively 96.14 percent leased to 174 tenants. In total, the properties consist of approximately 2 million square feet. They represent a significant addition to Inland’s portfolio; so far this year the company has acquired eight properties for approximately $221 million.

The properties included in the most recent acquisition are Eastside Junction (79,700 square feet) in Athens, Ala.; Harvest Square (70,590 square feet) in Harvest, Ala.; Prattville Town Center (168,842 square feet) in Prattville, Ala.; Fairgrounds Crossing (155,127 square feet) in Hot Springs, Ark.; Heritage Square (22,385 square feet) in Conyers, Ga.; Regal Court (363,174 square feet) in Shreveport, La.; The Shoppes at Branson Hills (237,510 square feet) in Branson, Mo.; Branson Hills Plaza (210,201 square feet) in Branson, Mo.; Shoppes at Hawk Ridge Lake (75,951 square feet) in St. Louis, Mo.; Whispering Ridge (69,676 square feet) in Omaha, Neb.; Landing Ocean (53,220 square feet) Isle Beach in Ocean Isle, N.C.; Walgreens Plaza (42,219 square feet) in Jacksonville, N.C.; Copps Grocery Store (69,911 square feet)  in Stevens Point, Wis.; Fox Point (171,121 square feet) in Neenah, Wis.; and Shoppes at Prairie Ridge (232,606 square feet) in Pleasant Prairie, Wis.

“Inland Real Estate Income Trust Inc. is focused on acquiring high-quality, stabilized, necessity-based multi-tenant retail assets,” Sabshon said. “This portfolio comprised 15 properties that aligned well with our strategy and, extraordinarily, they are all properties with which our real estate management professionals already have intimate operational knowledge.”

The acquisition is expected to close in two tranches on or before Dec. 15 and March 16, 2015, subject to the satisfaction of customary closing conditions.