Inland Real Estate Corporation Announces Acquisition of Eastgate Crossing in Cincinnati MSA

Inland Real Estate Corporation

today announced that its joint venture with Dutch pension fund administrator PGGM has acquired the Eastgate Crossing shopping center, located in Union Township, Ohio, a thriving community less than 20 miles east of downtown Cincinnati, for a purchase price of $21.1 million, excluding closing costs and adjustments and subject to future earnout payments. The 174,700-square-foot property is approximately 97% leased to Kroger, Marshalls, Ashley Furniture, Jo-Ann Fabrics, Dollar Tree, and a complementary mix of national and local retailers. "Eastgate Crossing is a best-in-class, grocery and value-retail hybrid center, characterized by its prime location in a dynamic regional trade area, excellent demographic profile and strong tenant line-up of leading national retailers such as Marshalls and Kroger, the number one grocer in the Cincinnati market," said Scott Carr, executive vice president and chief investment officer of Inland Real Estate Corporation. "The Eastgate Crossing acquisition expands our presence within the Cincinnati MSA to a total of four high-quality shopping centers with total gross leasable area of approximately 628,100 square feet (1.4 million square feet of retail space, including ground leases and non-owned shadow anchors), which we can leverage to achieve leasing and operating efficiencies." Eastgate Crossing is strategically located in the heart of the Eastgate retail corridor, across from the Eastgate Mall and close to the busy intersection of I-275 and State Route 32. The center benefits from consumer traffic generated by the mall, and draws from a residential population of more than 46,000 with average household income over $76,700 within a three-mile radius, and nearly 103,000 people with average household income over $88,700 within five miles of the property. The $21.1 million purchase price included a $14.6 million mortgage loan with a maturity date in May 2017, which the joint venture assumed at closing. The IRC-PGGM venture maintains an overall leverage level of 40% to 50% on the portfolio, in accordance with the partnership agreement. "With the acquisition of Eastgate Crossing, we have added another Class-A asset to the IRC-PGGM joint venture portfolio," said Mark Zalatoris, president and chief executive officer of Inland Real Estate Corporation. "As the final purchase for our joint venture with PGGM, Eastgate Crossing exemplifies the high-quality assets acquired by the venture over the past few years, which have enhanced the overall quality and diversification of our total portfolio." Including Eastgate Crossing, the IRC-PGGM joint venture portfolio consists of 36 prime retail assets aggregating approximately 5.0 million square feet (owned) of gross leasable area.