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Inland Buys 11-Property Retail Portfolio for $295 Million

The Inland Real Estate Group of Companies Inc, a commercial real estate and finance group, has purchased a 748,000-square-foot portfolio of 11 single-tenant retail buildings net leased to Stop & Shop for $295 million.

The Inland Real Estate Group of Companies Inc, a commercial real estate and finance group, has purchased a 748,000-square-foot portfolio of 11 single-tenant retail buildings net leased to Stop & Shop for $295 million. The properties are located throughout Connecticut, Massachusetts and Rhode Island.

JLL Capital Markets marketed the portfolio on behalf of the seller, Winstanley Enterprises and Surrey Equities, and arranged $157.95 million in acquisition financing, working on behalf of Inland, by securing two separate 10-year, fixed-rate loans with a life company and with a commercial mortgage-backed securities lender.

The retail properties are net leased on a long-term basis to Stop & Shop, a division of Ahold Delhaize USA Inc., the third-largest supermarket operator in the U.S. Stop & Shop is the No. 1 grocer by market share in Connecticut, Massachusetts and Rhode Island.

Three of the Massachusetts properties are located in the Boston metro area, while the fourth is located near Cape Cod. Four properties are located in and around Providence, Rhode Island, and three are located in the Hartford, Connecticut metro area.

“This portfolio’s established and necessity-based footprint, combined with 20-year leases at all 11 properties in strong market locations, is an ideal example of the opportunities we seek to acquire as we move further into 2021,” said Matthew Tice, senior vice president of Inland Real Estate Acquisitions LLC.

According to JLL Research, grocery-anchored retail centers continue to be investors’ preferred retail property type, with single-tenant grocery assets and grocery-anchored retail under 100,000 square feet being one of the most sought-after asset classes during the recovery. JLL anticipates there will be significant cap rate compression over the next 12 to 18 months.

The Inland Real Estate Group of Companies, Inc., headquartered in Oak Brook, Illinois, is one of the nation’s largest commercial real estate and finance organizations. Its member companies provide commercial real estate-related services and alternative investment funds, including limited partnerships, institutional funds, a real estate investment trust, and private placement offerings/Section 1031 exchange programs.

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