{"id":1004091083,"date":"2014-02-11T06:56:35","date_gmt":"2014-02-11T14:56:35","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004091083"},"modified":"2022-12-08T06:11:26","modified_gmt":"2022-12-08T14:11:26","slug":"kite-realty-inland-diversified-merger-shows-retails-resurgent-strength","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\/","title":{"rendered":"Kite Realty\u2013Inland Diversified Merger Shows Retail\u2019s Resurgent Strength"},"content":{"rendered":"

By Scott Baltic, Contributing Editor<\/i><\/p>\n

\"John<\/a>

John Kite, Kite Realty<\/p><\/div>\n

<\/i>\u00a0The pending merger of Inland Diversified Real Estate Trust Inc. into a wholly owned subsidiary of Kite Realty Group Trust in a stock-for-stock transaction worth $1.2 billion is just another sign, albeit a very sizable one, of the retail sector\u2019s strength, in light of a recent report from Real Capital Analytics.<\/p>\n

The merger, announced on Monday, will create an entity (still known as Kite Realty, and headquartered in Indianapolis and still trading on the NYSE under the \u201cKRG\u201d symbol) with a combined asset base of 131 properties (previously 74) across 26 states and totaling 20.3 million owned square feet (previously 10.1 million). The combined company will have a total equity market cap of about $2.1 billion and an enterprise value of about $3.9 billion.<\/p>\n

The transaction is expected to close late in the second quarter or in the third quarter.<\/p>\n

In a release, Kite Realty chairman\/CEO John Kite called the deal \u201ca transformational transaction for our company\u201d and emphasized the complementary nature of the two portfolios.<\/p>\n

Inland Diversified\u2019s portfolio consists of 57 retail properties that were 95.3 percent leased as of Dec. 31, 2013. The transaction is projected to have a 6.6 percent 2014 estimated cash cap rate and an implied purchase price of about $195 per square foot, which Kite Realty judges to be \u201csignificantly below replacement cost.\u201d<\/p>\n

The deal will bring Kite Realty into some new markets, including Westchester, N.Y.; Bayonne, N.J.; Las Vegas; Virginia Beach, Va.; and Salt Lake City.<\/p>\n

The RCA report noted that sales of significant retail properties totaled $60.8 billion in 2013, up 8 percent from the previous year, and sales of strip centers and single-tenant properties jumped 26 percent. Entity-level transactions in all of 2013 comprised about $6.0 billion of the $60.8 billion total.<\/p>\n

This surge in activity is accompanied by what RCA calls a \u201cremarkable rebound in prices\u201d for retail properties in 2013. The Moody\u2019s\/RCA Commercial Property Price Index for retail is expected to post a 23 percent increase for the year, \u201cwell above any other property type,\u201d according to the report.<\/p>\n

Once the merger is closed, Kite Realty\u2019s board of trustees will consist of nine members, six of whom will be current trustees of Kite Realty and three of whom will be designated by Inland Diversified. John Kite will serve as CEO & chairman of the combined company. Thomas McGowan and Daniel Sink, Kite Realty\u2019s current president & COO and its current executive vice president & CFO, respectively, will retain those positions in the combined company.<\/p>\n

In mid-December, Inland Diversified agreed to sell a portfolio of 84 single-tenant net-leased retail and industrial properties to Realty Income Corp. for $503 million<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The pending merger of Inland Diversified Real Estate Trust Inc. into a wholly owned subsidiary of Kite Realty Group Trust in a stock-for-stock transaction worth $1.2 billion is just another sign, albeit a very sizable one, of the retail sector\u2019s strength, in light of a recent report from Real Capital Analytics. <\/p>\n","protected":false},"author":882,"featured_media":1004091085,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21783,21742,21749],"tags":[],"class_list":["post-1004091083","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investment","category-latest","category-retail"],"acf":[],"yoast_head":"\nKite Realty\u2013Inland Diversified Merger Shows Retail\u2019s Resurgent Strength - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Kite Realty\u2013Inland Diversified Merger Shows Retail\u2019s Resurgent Strength\" \/>\n<meta property=\"og:description\" content=\"The pending merger of Inland Diversified Real Estate Trust Inc. into a wholly owned subsidiary of Kite Realty Group Trust in a stock-for-stock transaction worth $1.2 billion is just another sign, albeit a very sizable one, of the retail sector\u2019s strength, in light of a recent report from Real Capital Analytics.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2014-02-11T14:56:35+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-08T14:11:26+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2014\/02\/kite-john.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"77\" \/>\n\t<meta property=\"og:image:height\" content=\"110\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\\\/\"},\"author\":{\"name\":\"Scott Baltic\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/61ac1450f3ffaa0e850b834c28526555\"},\"headline\":\"Kite Realty\u2013Inland Diversified Merger Shows Retail\u2019s Resurgent Strength\",\"datePublished\":\"2014-02-11T14:56:35+00:00\",\"dateModified\":\"2022-12-08T14:11:26+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\\\/\"},\"wordCount\":448,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2014\\\/02\\\/kite-john.jpg\",\"articleSection\":[\"Investment\",\"News\",\"Retail\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\\\/\",\"name\":\"Kite Realty\u2013Inland Diversified Merger Shows Retail\u2019s Resurgent Strength - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2014\\\/02\\\/kite-john.jpg\",\"datePublished\":\"2014-02-11T14:56:35+00:00\",\"dateModified\":\"2022-12-08T14:11:26+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/61ac1450f3ffaa0e850b834c28526555\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2014\\\/02\\\/kite-john.jpg\",\"contentUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2014\\\/02\\\/kite-john.jpg\",\"width\":77,\"height\":110,\"caption\":\"John Kite, Kite Realty\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Kite Realty\u2013Inland Diversified Merger Shows Retail\u2019s Resurgent Strength\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#website\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/61ac1450f3ffaa0e850b834c28526555\",\"name\":\"Scott Baltic\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2022\\\/06\\\/Scott.jpg?w=96\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2022\\\/06\\\/Scott.jpg?w=96\",\"contentUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2022\\\/06\\\/Scott.jpg?w=96\",\"caption\":\"Scott Baltic\"},\"description\":\"Scott Baltic has been a contributing editor with Commercial Property Executive since 2011 and also wrote for its predecessor, Commercial Property News. He started writing about CRE in 1988 for a group of Chicago-based publications and in 1989 became the editor of Midwest Real Estate News. After moving on from there in 1991, Baltic continued writing occasionally about real estate, for publications like the Chicago Sun-Times, National Real Estate Investor, Urban Land, Shopping Center World and Architect\u2019s Newspaper. He earned a master\u2019s in journalism from Northwestern University\u2019s Medill School of Journalism and has a bachelor\u2019s from North Park University.\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/author\\\/scott-baltic\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Kite Realty\u2013Inland Diversified Merger Shows Retail\u2019s Resurgent Strength - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\/","og_locale":"en_US","og_type":"article","og_title":"Kite Realty\u2013Inland Diversified Merger Shows Retail\u2019s Resurgent Strength","og_description":"The pending merger of Inland Diversified Real Estate Trust Inc. into a wholly owned subsidiary of Kite Realty Group Trust in a stock-for-stock transaction worth $1.2 billion is just another sign, albeit a very sizable one, of the retail sector\u2019s strength, in light of a recent report from Real Capital Analytics.","og_url":"https:\/\/www.commercialsearch.com\/news\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2014-02-11T14:56:35+00:00","article_modified_time":"2022-12-08T14:11:26+00:00","og_image":[{"width":77,"height":110,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2014\/02\/kite-john.jpg","type":"image\/jpeg"}],"author":"Scott Baltic","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.commercialsearch.com\/news\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\/#article","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\/"},"author":{"name":"Scott Baltic","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555"},"headline":"Kite Realty\u2013Inland Diversified Merger Shows Retail\u2019s Resurgent Strength","datePublished":"2014-02-11T14:56:35+00:00","dateModified":"2022-12-08T14:11:26+00:00","mainEntityOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\/"},"wordCount":448,"commentCount":0,"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2014\/02\/kite-john.jpg","articleSection":["Investment","News","Retail"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.commercialsearch.com\/news\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\/","url":"https:\/\/www.commercialsearch.com\/news\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\/","name":"Kite Realty\u2013Inland Diversified Merger Shows Retail\u2019s Resurgent Strength - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2014\/02\/kite-john.jpg","datePublished":"2014-02-11T14:56:35+00:00","dateModified":"2022-12-08T14:11:26+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2014\/02\/kite-john.jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2014\/02\/kite-john.jpg","width":77,"height":110,"caption":"John Kite, Kite Realty"},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/kite-realty-inland-diversified-merger-shows-retails-resurgent-strength\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"Kite Realty\u2013Inland Diversified Merger Shows Retail\u2019s Resurgent Strength"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555","name":"Scott Baltic","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96","caption":"Scott Baltic"},"description":"Scott Baltic has been a contributing editor with Commercial Property Executive since 2011 and also wrote for its predecessor, Commercial Property News. He started writing about CRE in 1988 for a group of Chicago-based publications and in 1989 became the editor of Midwest Real Estate News. After moving on from there in 1991, Baltic continued writing occasionally about real estate, for publications like the Chicago Sun-Times, National Real Estate Investor, Urban Land, Shopping Center World and Architect\u2019s Newspaper. He earned a master\u2019s in journalism from Northwestern University\u2019s Medill School of Journalism and has a bachelor\u2019s from North Park University.","url":"https:\/\/www.commercialsearch.com\/news\/author\/scott-baltic\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2014\/02\/kite-john.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004091083","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/882"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004091083"}],"version-history":[{"count":1,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004091083\/revisions"}],"predecessor-version":[{"id":1004629633,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004091083\/revisions\/1004629633"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004091085"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004091083"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004091083"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004091083"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}