OAK BROOK, IL-Inland American Real Estate Trust Inc., a public non-traded REIT, has purchased five retail centers in the Southeast and Southwest for a combined $209 million. Inland Real Estate Acquisitions Inc., the purchasing arm of the locally-based Inland Real Estate Group of Cos., acquired the properties for the REIT.
The properties include University Oaks (235,906 square feet) in Round Rock, TX, Prestonwood Town Center (233,182 square feet) in Dallas, McKinney Towne Crossing (224,755 square feet) in McKinney, TX, Tulsa Hills (376,573 square feet) in Tulsa, OK and Heritage Crossing (311,678 square feet) in Wilson, SC, for a total of almost 1.4 million square feet. The portfolio is about 92% occupied, says Matt Tice, VP with Inland Real Estate Acquisitions.
He tells GlobeSt.com that the properties are not considered distressed, though the McKinney site was purchased through negotiations with the developer, Weber & Co., and its lender. The new development is anchored by Best Buy, PetSmart and Staples. “The mortgage had come due with the borrower, and we worked out the arrangement. There was no deficit in the value of the property,” Tice says. Other former owners of the properties include the Archon Group (Prestonwood), and Tulsa Hills LLC.
Other companies are out there buying assets because they need to place value, Tice says, causing bidding wars that drive down cap rates. “These were the right assets at the right price, with cap rates in the high 7s and low 8s. We’re about getting a quality asset at a good price,” he says.
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