Inland Real Estate Corporation announced the acquisition of The Point at Clark, a multi-level retail center with 95,455 square feet of leasable retail area plus on premises parking for 175 cars, located in Chicago, Illinois. The Company agreed to pay the seller approximately US$28.8mn at the closing, excluding closing costs and adjustments. The acquisition was financed with draws under the Company’s US$150 mn line of credit facility and cash on hand.
Inland Real Estate Corporation anticipates obtaining property-level financing on the presently unencumbered retail center within the coming weeks at leverage levels consistent with the Company’s existing business plan. IRC expects to utilize net proceeds from the mortgage loan to repay advances made under its line of credit facility to acquire the property.
In addition, the Company plans to contribute The Point at Clark to its previously announced joint venture with PGGM, a leading Dutch pension fund administrator and asset manager. The Company expects to utilize PGGM’s equity contribution of 45 percent of unlevered acquisition value to further reduce the outstanding balance under IRC’s line of credit facility. Under the terms of the joint venture agreement with PGGM, Inland Real Estate Corporation holds a 55 percent equity ownership interest in the venture and earns fees for asset management, property management, leasing and other services provided to the venture.
The Point at Clark retail center, completed in 1996, is located at the intersection of Clark and Halsted streets within an established, diverse trade area in Chicago’s dynamic Lakeview neighborhood. The center’s strong urban location is distinguished by high average household income and dense population of more than 420,000 within a three mile radius. The Point at Clark retail center is leased to market-leading retailers DSW Shoe Warehouse, Marshalls and Michaels and is 100 percent financially occupied.
“We believe The Point at Clark, located within a bustling retail corridor with high barriers to entry, is an irreplaceable asset in the trade area,” said Mark E. Zalatoris, Inland Real Estate Corporation’s president and CEO. “The contribution of this newly acquired asset to the PGGM joint venture is an exciting way to launch this investment vehicle through which we expect to increase our assets under management and grow shareholder value over time.”