Inland Pays $71M for NNN Properties

OAK BROOK, IL-Inland Diversified Real Estate Trust Inc. added to its portfolio of grocery properties through the acquisition of six properties located in Delaware, Missouri, New York and Pennsylvania. Inland paid approximately $71.4 million for the assets, which were acquired through two commercial real estate transactions.

The portfolio consists of three grocery stores in Missouri that leased to Schnuck Markets Inc. The stores were purchased for approximately $22.6 million through a sale-leaseback transaction containing renewal options.  Fifteen years remain on the Schnuck leases.

The stores are at:

• 5055 Aresenal St., St. Louis
• 3432 S. Grand St., St. Louis
• 1191 Gannon Plaza, Festus, MO

The second transaction involved the acquisition of three Pathmark grocery stores in Delaware, New York and Pennsylvania, which were bought for approximately $48.8 million. There are 18 years remaining on the Pathmark leases; the agreements also have multiple renewal options.

The Pathmark stores are at:

• 4055 Merrick Rd., Seaford, NY
• 421 S. 69th Blvd., Upper Darby, PA
• 3901 Lancaster Pike, Wilmington, DE

“Both Schnucks and Pathmark are leading grocers in their respective markets and what we believe to be very strong tenants,” comments Matt Tice, vice president of Inland Real Estate Acquisitions, in a press release. Tice represented Inland Diversified in the transactions. “These are all existing stores in proven locations, generating high sales-per-square-foot," he adds.

“These acquisitions further strengthen our portfolio of necessity-based grocery properties, which as an asset class have traditionally performed very well across all economic cycles,” says Barry Lazarus, president and chief operating officer of Inland Diversified in the same press release. “With long-term triple net leases in place, we believe that these assets will offer steady returns that will support our dividend and align with our investment philosophy.”