INDIANAPOLIS—Kite Realty Group Trust recently closed on the sale of three retail properties in non-core areas of the US. The trust generated $35.2 million in gross proceeds from the transactions. During the quarter ending March 31st it sold a 14,500-square-foot single-tenant Walgreens at 50th and 12th in Seattle; Red Bank Commons, a 34,300-square-foot non-anchored center in Evansville, IN; and Ridge Plaza, a 115,100-square-foot center in Oak Ridge, NJ, anchored by an A&P.
HFF marketed Ridge Plaza on behalf of Kite Realty. ACRE Group, a Connecticut-based real estate firm, represented the buyer in this transaction. In addition, HFF’s debt placement team arranged a 10-year, fixed-rate acquisition loan through Columbia Bank on behalf of the buyer. The HFF investment sales team was led by senior managing directors Jose Cruz and Andrew Scandalios, and managing directors Kevin O’Hearn and Jeffrey Julien.
The proceeds from the sales were primarily used to pay down debt, Kite officials say.
“We will continue to prudently recycle capital from non-core assets and transition out of locations that do not fit our investment profile,” says John A. Kite, the company’s chairman and chief executive officer. “Demand for quality assets, whether defined as core or non-core by us, remains strong allowing us to take advantage of market conditions to meet strategic objectives.”
At December 31, 2013, Kite owned interests in a portfolio of 72 operating and redevelopment properties totaling about 12.4-million-square-feet and three properties currently under development totaling about 1-million-square-feet.