OAK BROOK, Ill.--(BUSINESS WIRE)--Inland Real Estate Corporation (NYSE:IRC) today announced that its joint venture with Dutch pension fund advisor PGGM has acquired Cedar Center South, a 139,000 square foot shopping center located in University Heights, a suburb of Cleveland, Ohio, for a purchase price of $24.9 million, excluding closing costs and adjustments. IRC’s equity contribution was funded with proceeds from recent sales of non-core assets.
“We are executing on our strategy to enhance the long-term growth potential of our portfolio through the acquisition of retail assets with credit-worthy tenancy, strong demographics and excellent market position,” said Scott Carr, chief investment officer for Inland Real Estate Corporation. “The acquisition of Cedar Center South advances our goal of increasing the geographic and tenant diversity of our portfolio, and presents the opportunity to add value through asset improvement initiatives. Further, by acquiring the center through our PGGM joint venture, we are utilizing our capital efficiently and achieving an attractive return on investment.”
Cedar Center South is anchored by a 45,300-square-foot Whole Foods grocery store – one of two serving all of the eastern Cleveland metropolitan area – and a 12,100-square-foot CVS/pharmacy, both on long-term leases that provide a stable, high credit quality income stream. The center also includes a complementary mix of other national and local retailers. The Company expects to leverage its property management expertise and market position to create additional value at the 83-percent-leased shopping center through leasing and asset repositioning initiatives. Upon closing, the joint venture assumed an $18.4 million property-level loan with a two-year term, which it expects to pay off or refinance upon maturity.
Cedar Center South is situated approximately eight miles east of downtown Cleveland in the inner ring suburb of University Heights. The center is surrounded by a dense and affluent population base of approximately 128,700 within a three-mile radius, earning an average household income of nearly $75,000. Including Cedar Center South, the Company currently has an ownership interest in four retail centers totaling more than 592,000 square feet of leasable area within the Cleveland metropolitan statistical area (MSA).
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 June 30, 2013, the Company owned interests in 154 investment properties, including 40 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.