Newport Pavilion Acquired by Real Estate Investment Trust
Newport Pavilion has been acquired by Inland Real Estate Corporation in a joint venture with Dutch pension fund advisor PGGM, according to a news release from the real estate investment trust based in Oak Brook, Illinois.
The acquisition of phase I of the Pavilion, which includes Kroger, Michaels, PetSmart, Ulta, Famous Footwear, Chick-fil-A, and others, was acquired for $43.3 million in cash, subject to future earnout payments.
The center includes a separately-owned Target store.
“Newport Pavilion is an outstanding addition to our necessity and value-based retail portfolio, representing best-in-class new power center development, with leading national retailers in a high-barrier-to-entry infill location,” said Mark Zalatoris, president and chief executive officer of Inland Real Estate Corporation, in a statement. “Our acquisition of this ‘Class A’ Kroger-anchored power center in Ohio’s largest metropolitan area enhances the geographic and tenant diversification of our portfolio, and represents an accretive re-deployment of proceeds from recent dispositions of non-core assets.”
Newport Pavilion Phase II, which includes approximately 115,000 square feet of GLA leased to Dick’s Sporting Goods, TJ Maxx, Buffalo Wild Wings and others, is under contract for approximately $23.8 million, subject to future earnout payments. The venture expects to close its acquisition of Newport Pavilion Phase II before year end 2014.
The Cincinnati Business Courier's Tom Demeropolis reports:
Originally developed by Bear Creek Capital, Newport Pavilion hit a snag when the developer ran into trouble with its other projects.
A group of local investors led by Anchor Investment Partners LLC purchased the debt secured by Newport Pavilion, a 55-acre development off I-471, from Bank of America in 2011, according to Anchor principals Charles Townsend and Roger Watson. Townsend is the founder of real estate brokerage Anchor Associates. Watson is a commercial lending veteran who worked most recently at Integra Bank Corp.
Newport Pavilion draws from a population base of nearly 107,000 with average household income of $56,700 within a 3-mile radius, plus an additional 250,000 daytime population working within a ten minute drive.
Inland Real Estate Corporation is a self-advised and self-managed publicly traded real estate investment trust (REIT) focused on owning and operating open-air neighborhood, community and power shopping centers located in well-established markets primarily in the Central United States. As of March 31, 2014, the Company owned interests in 138 investment properties, including 29 owned through its unconsolidated joint ventures, with aggregate leasable space of approximately 15 million square feet.
Staff report from news release