Inland Real Estate Income Trust, Inc. has signed a definitive 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 for an estimated purchase price of $318 million.
The acquisition is expected to close in two tranches on or before December 15, 2014 and March 16, 2015, respectively, subject to the satisfaction of customary closing conditions.
The properties are a combination of grocery and power centers that are collectively 96.14 percent leased to 174 tenants. Inland Real Estate Acquisitions, Inc., who previously sought out and purchased these properties for Inland Diversified Real Estate Trust, Inc., assisted Inland Income Trust with identifying the retail portfolio and negotiating the purchase of the properties at the same average effective cap rate as the overall 60-property portfolio of Inland Diversified that was acquired by Kite Realty in the merger with Inland Diversified earlier this year.
In addition, familiarity with the properties and purchasing them off-market resulted in a savings for Inland Income Trust in broker and due diligence costs.
The following properties will be included in the transaction: 1) Eastside Junction, Athens, Alabama 2) Harvest Square, Harvest, Alabama 3) Prattville Town Center, Prattville, Alabama 4) Fairgrounds Crossing, Hot Springs, Arkansas 5) Heritage Square, Conyers, Georgia 6) Regal Court, Shreveport, Louisiana 7) The Shoppes at Branson Hills, Branson, Missouri 8) Branson Hills Plaza, Branson, Missouri 9) Shoppes at Hawk Ridge, Lake St. Louis, Missouri 10) Whispering Ridge, Omaha, Nebraska 11) Landing Ocean Isle Beach, Ocean Isle, North Carolina 12) Walgreens Plaza, Jacksonville, North Carolina 13) Copps Grocery Store, Stevens Point, Wisconsin 14) Fox Point, Neenah, Wisconsin 15) Shoppes at Prairie Ridge, Pleasant Prairie, Wisconsin