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Inland Real Estate Income Trust to Buy Two Retail Centers for $173.7 Million

Inland Real Estate Income Trust Inc., a publicly registered non-traded REIT, entered into agreements to purchase two retail centers, Settlers Ridge and Milford Marketplace, for a combined purchase price of $173.7 million. The transactions are expected to close on October 2nd.

Settlers Ridge is a 472,572-square-foot retail center in Pittsburgh, Pennsylvania that was constructed from 2008 through 2011. The property is 98.5 percent occupied and leased to 43 tenants, including Giant Eagle, Cinemark, Barnes & Noble, and REI. The weighted-average remaining lease term for the tenants occupying the property is approximately 10 years. 

Inland REIT intends to purchase the property for $139.7 million in cash, plus closing costs, and plans to fund 100 percent of the purchase price with proceeds from their offering. The REIT will pay their business manager an acquisition fee equal to 1.5 percent of the contract purchase price, or approximately $2.1 million.

Milford Marketplace is a 112,257-square-foot retail center in Milford, Connecticut that was constructed in 2007. The property is 100 percent occupied and leased to 21 tenants, including Whole Foods. The weighted-average remaining lease term for the tenants occupying the property is approximately six years. 

The REIT intends to purchase the property for approximately $34 million in cash, plus closing costs, and expects to fund 100 percent of the purchase price with proceeds from their offering. Inland REIT will pay their business manager an acquisition fee equal of approximately $510,000.

This week, The DI Wire reported that Inland REIT purchased a newly constructed retail center in Lawrence, Kansas for $20.8 million.

Inland Real Estate Income Trust was formed to acquire a diversified portfolio of commercial real estate assets located throughout the United States and focuses primarily on the acquisition of multi-tenant neighborhood retail centers. As of June 30, 2015, the company owned 46 retail properties located in 19 states that total 4,547,980 square feet.