OAK BROOK, ILL., AND NEW YORK CITY — Subsidiaries of Inland American Real Estate Trust and Centro Properties Group have entered into a $471 million joint venture for the ownership of a shopping center portfolio. The 25 properties are primarily grocery-anchored and necessity-based community shopping centers. They contain a total of 4.5 million square feet of space and are located across 13 states. Average occupancy for the portfolio was 91 percent; national tenants at the centers included Walmart, Publix, Kroger, Best Buy, Kohl's, Staples, Bed Bath & Beyond and T.J. Maxx.
Following the closing of the sale, the joint venture procured $310 million in CMBS financing for 24 of the properties in the portfolio. The new financing, which carries a 10-year term, will replace the existing debt, which would have came to term this week. The new financing was provided by J.P. Morgan and Goldman Sachs.
Both REITs have been previously involved in the portfolio. Centro previously owned the portfolio before selling it to the joint venture. Inland previously had a participation on a portion of the first mortgage that was retired following the portfolio's closing. Moving forward, Centro will serve as managing member for the portfolio. Inland will have a significant equity stake in the portfolio, but the exact amount was not disclosed.
“We believed that these were quality properties when we purchased the original loan participation, and this new joint venture agreement reaffirms that we still believe in them.” said Michael Podboy, vice president of Inland American Business Manager & Advisor, in a statement.
Centro US President and CEO Michael Carroll added, “Centro is pleased with the outcome of the refinancing and structure of the joint venture with Inland America and looks forward to the continued leverage our national platform provides through value add leasing and management of the portfolio.”
— Coleman Wood