Inland Real Estate Acquires The Point at Clark Retail Center
The acquisition was financed with draws under the company’s $150m line of credit facility and cash on hand.
Inland Real Estate anticipates obtaining property-level financing on the presently unencumbered retail center within the coming weeks at leverage levels consistent with the company’s existing business plan. The company expects to utilize net proceeds from the mortgage loan to repay advances made under its line of credit facility to acquire the property.
In addition, the company plans to contribute The Point at Clark to its previously announced joint venture with PGGM, a Dutch pension fund administrator and asset manager. The company expects to utilize PGGM’s equity contribution of 45 percent of unlevered acquisition value to further reduce the outstanding balance under IRC’s line of credit facility.
Under the terms of the joint venture agreement with PGGM, the company holds a 55 percent equity ownership interest in the venture and earns fees for asset management, property management, leasing and other services provided to the venture.
Mark Zalatoris, president and CEO of Inland Real Estate, said: “We believe The Point at Clark, located within a bustling retail corridor with high barriers to entry, is an irreplaceable asset in the trade area.
"The contribution of this newly acquired asset to the PGGM joint venture is an exciting way to launch this investment vehicle through which we expect to increase our assets under management and grow shareholder value over time.”
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