Indy REIT Flies High in Dallas

An Indianapolis, Ind.-based REIT has dipped its toe in the Dallas real estate market.

An Indianapolis-based REIT has dipped its toe in the DFW real estate market. Kite Realty Group Trust acquired a 200,000-square-foot power center located at the intersection of I-30 and Hulen St. in Fort Worth.

Kite purchased the Chapel Hill Shopping Center for $18 million. The trust obtained acquisition financing through the use of remaining 1031 sale proceeds and other unnamed liquidity sources, according to the announcement.

Chapel Hill Shopping Center

Chapel Hill Shopping Center

At the time of the closing, the center was 96 percent leased and anchored by HEB Grocery’s Central Market, The Container Store and Cost Plus World Market. Its tenant roster also includes retailers such as Ann Taylor, Beauty Brands, New Balance and Men’s Wearhouse.

“Our off-market acquisition of Chapel Hill is the most recent example of execution on our strategy of continually upgrading the portfolio and leveraging our longstanding relationships in the industry,” John Kite, chairman & CEO of the REIT, said in a prepared statement. “The addition of Chapel Hill further enhances our high-quality portfolio and provides remerchandising opportunities to continue to grow our free cash flow. With this acquisition, we have now redeployed the proceeds realized from our recent dispositions and satisfied our acquisition guidance for the year.”

Image courtesy of Kite Realty