Inland Real Estate Corp. financed its contribution to the acquisition, $60.8 million, with a five-year, interest-only, 5.6%-fixed rate bank loan of $90.3 million, as well as a draw on the company's existing $155 million line of credit and cash on hand. The company expects to earn acquisition and annual asset management fees from the purchase.
An Inland spokesman says the buildings are 100% leased. Inland Real Estate Acquisitions Inc. bought the properties on behalf of the venture because of the "strength of the tenant, no multi-tenant risk since the properties are 100% occupied by BofA, low turnover risk and long-term leases (10 years plus options) structured with annual increases," he tells GlobeSt.com.
The properties include buildings in Las Vegas, Hunt Valley, MD and Rio Rancho, NM, as well as a 14-year-old, 300,000-sf building at One Fleet Way, Moosic, PA. Inland structured the deal to provide capital for ongoing improvements throughout the life of the lease, the spokesman says.
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