OAK BROOK, Ill.--(BUSINESS WIRE)--Inland Real Estate Corporation (NYSE:IRC) today announced the acquisition of two shopping centers for an aggregate purchase price of approximately $63.3 million, excluding closing costs and adjustments. On December 20, the Company purchased phase one of the Goldenrod Marketplace shopping center in Orlando, Fla., a recently developed community retail center shadow-anchored by a Walmart Supercenter, for $20.0 million. In addition, on December 19, the Company acquired through its joint venture with PGGM the Fort Smith Pavilion, a regional power center located in Fort Smith, Ark., for $43.3 million, including a loan assumption of approximately $33.2 million at closing.
“With these acquisitions, we continue to enhance the quality, diversification and growth profile of our portfolio as we expand our retail platform into additional markets within the Central and Southeastern United States,” said Mark Zalatoris, president and chief executive officer of Inland Real Estate Corporation. “These Class A retail centers possess best-of-class retailer line-ups and commanding locations within their respective trade areas. In addition, the acquisition of Goldenrod Marketplace in Orlando complements our recently announced joint venture with MAB to develop grocery-anchored shopping centers in the southeast United States.”
The Goldenrod Marketplace shopping center totals approximately 130,100 square feet and is shadow-anchored by a 207,200-square-foot Walmart Supercenter. The Company has acquired approximately 91,500 square feet (excluding ground leases) which was 88 percent leased at closing and includes 64,000 square feet leased to anchor tenants Marshalls and LA Fitness, plus two multi-tenant outbuildings totaling nearly 27,500 square feet. The acquisition also includes two additional outparcel buildings totaling nearly 6,000 square feet which are ground leased to Taco Bell and KFC. IRC plans to purchase the remaining 32,600 square feet of in-line retail space, which is currently under development, after completion of construction and stabilization, which is expected to occur in the third quarter of 2014. Goldenrod Marketplace is well-situated within a vibrant and growing trade area located north of the Orlando International Airport. The center draws from a five-mile population base of more than 172,000 with an average household income of nearly $61,000.
The 97-percent-leased Fort Smith Pavilion is a regional power center consisting of 415,000 square feet of gross leasable area, including shadow anchor Target. IRC has acquired approximately 288,000 square feet of big-box, junior anchor, in-line shops and outlot retail leased to in-demand retailers such as Bed Bath & Beyond, Best Buy, Dick’s Sporting Goods, Old Navy, Petco, Michaels, Books-A-Million, Shoe Carnival and Ulta. The property is strategically located in the center of commercial development in Fort Smith, the second largest city in Arkansas and a regional manufacturing center and transportation hub. Of note, Fort Smith Pavilion benefits from a larger than typical trade area, attracting shoppers from across the Fort Smith MSA, which has a population base of nearly 285,900 and average household income of approximately $51,700.
About Inland Real Estate Corporation
Inland Real Estate Corporation is a self-administered and self-managed publicly traded real estate investment trust (REIT) that owns and operates open-air neighborhood, community, power and lifestyle retail centers and single-tenant properties located primarily in the Midwestern United States. As of September 30, 2013, the Company owned interests in 161 investment properties, including 52 owned through its unconsolidated joint ventures, with aggregate leasable space of approximately 15 million square feet. For additional information, please visit www.inlandrealestate.com. To connect with Inland Real Estate Corporation via LinkedIn, please visit http://www.linkedin.com/company/inland-real-estate-corporation, or via Twitter at www.twitter.com/IRC_REIT.
Certain statements in this news release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not reflect historical facts and instead reflect our management's intentions, beliefs, expectations, plans or predictions of the future. Forward-looking statements can often be identified by words such as "believe," "expect," "anticipate," "intend," "estimate," "may," "will," "should" and "could." Examples of forward-looking statements include, but are not limited to, statements that describe or contain information related to matters such as management's intent, belief or expectation with respect to our financial performance, investment strategy or our portfolio, our ability to address debt maturities, our cash flows, our growth prospects, the value of our assets, our joint venture commitments and the amount and timing of anticipated future cash distributions. Forward-looking statements reflect the intent, belief or expectations of our management based on their knowledge and understanding of the business and industry and their assumptions, beliefs and expectations with respect to the market for commercial real estate, the U.S. economy and other future conditions. These statements are not guarantees of future performance, and investors should not place undue reliance on forward-looking statements. Actual results may differ materially from those expressed or forecasted in forward-looking statements due to a variety of risks, uncertainties and other factors, including but not limited to the factors listed and described under Item 1A"Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the Securities and Exchange Commission (the "SEC") on February 28, 2013 as they may be revised or supplemented by us in subsequent Reports on Form 10-Q and other filings with the SEC. Among such risks, uncertainties and other factors are market and economic challenges experienced by the U.S. economy or real estate industry as a whole, including dislocations and liquidity disruptions in the credit markets; the inability of tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business; competition for real estate assets and tenants; impairment charges; the availability of cash flow from operating activities for distributions and capital expenditures; our ability to refinance maturing debt or to obtain new financing on attractive terms; future increases in interest rates; actions or failures by our joint venture partners, including development partners; and factors that could affect our ability to qualify as a real estate investment trust. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.