Inland Real Estate Corporation Acquires Red Top Plaza for $19.8 Million

Strategic Insights -

Inland Real Estate Corporation has announced the acquisition of Red Top Plaza, a 151,840 square foot neighborhood shopping center in the Village of Libertyville, a northern suburb of Chicago. The property is anchored by Jewel-Osco, a leading grocery retailer in the Chicagoland area with a market share of 40 percent. The IRC-PGGM joint venture completed the all-cash acquisition of Red Top Plaza on June 2, 2011, with a purchase price of approximately $19.8 million.

Key Takeaways:

  • Red Top Plaza is a 151,840 square foot neighborhood shopping center anchored by Jewel-Osco, a leading grocery retailer in the Chicagoland area.
  • The property features a strong mix of national and regional retailers, including Fifth Third Bank, Tuesday Morning, and Lou Malnati's Pizzeria.
  • The area surrounding Red Top Plaza has strong demographics, with an average household income of approximately $116,600 and an estimated household population base of over 58,000 within a three-mile radius.
  • The IRC-PGGM joint venture acquired Red Top Plaza at a price of approximately $19.8 million, excluding closing costs and adjustments.
  • The joint venture has acquired four retail properties aggregating $84.8 million in asset acquisition value to date.
  • Inland Real Estate Corporation owns interests in 143 open-air neighborhood, community, power, and lifestyle shopping centers and single tenant properties, aggregating approximately 14 million square feet of leasable space.
  • The IRC-PGGM joint venture anticipates placing financing on the asset at leverage levels consistent with its existing business plan.

Statistics:

  • $19.8 million: Purchase price of Red Top Plaza.
  • 151,840 square feet: Leasable space of Red Top Plaza.
  • 40 percent: Market share of Jewel-Osco in the Chicagoland area.
  • $116,600: Average household income in the area surrounding Red Top Plaza.
  • 58,000: Estimated household population base within a three-mile radius of Red Top Plaza.
  • $84.8 million: Aggregate asset acquisition value of four retail properties acquired by the IRC-PGGM joint venture.
  • 14 million square feet: Total leasable space owned by Inland Real Estate Corporation.

Sources:

  • Inland Real Estate Corporation press release dated June 15, 2011.
  • Annual Report on Form 10-K for the year ended December 31, 2010.
  • Form 10-Q filings.