Inland Real Estate, PGGM JV Buys Phase 2 of Newport Pavilion for $23.6M
- Oct 24, 2014
Inland Real Estate Corp. continues to expand in the Cincinnati area. A few months ago, the company and Dutch pension fund advisor PGGM teamed up to purchase Phase I of Newport Pavilion, a grocery-anchored power center in Newport, Ky. Now, the joint venture has acquired the project’s second phase in a $23.6 million cash deal.
Newport Pavilion’s first phase consists of 222,300 square feet and is anchored by Kroger Marketplace, Michaels, PetSmart and Ulta. The Inland Real Estate-PGGM joint venture purchased it for $43.3 million in cash.
Phase II offers 115,000 square feet of retail space. Its tenant roster includes Dick’s Sporting Goods, TJ Maxx, Buffalo Wild Wings, Panera, Chipotle, T-Mobile, Sport Clips, among other retailers, restaurants and service providers.
In a statement, Inland Real Estate said that the 337,300-square-foot power center is 96 percent leased. It is also shadow-anchored by a separately-owned 134,500-square-foot Target store.
“Newport Pavilion is well-positioned as the dominant power center in the trade area, with an outstanding tenant line-up of leading national retailers representing virtually every major retail category, in an infill, fortress location,” Mark Zalatoris, president and chief executive officer of Inland Real Estate Corporation, said in a statement.
“In addition, the acquisition expands our presence in the Cincinnati market, furthering our strategic goal of growing our platform while simultaneously enhancing the diversification, quality and performance of the portfolio.”
According to a recent report from Marcus & Millichap Real Estate Investment Services Inc., demand for retail assets in the Cincinnati metro area continues to rise. Grocery-anchored centers with strong national tenants that traded in the past year sold at roughly $150 per square foot on average. Newport Pavilion commanded about $198.6 per square foot.
Photo illustration: Inland Real Estate CorporationChart courtesy of Marcus & Millichap.