By Gary Lloyd
An Indiana-based real estate investment trust has entered into a purchase and sale agreement to acquire a portfolio of nine retail operating properties, including ones in Trussville and Clay.
Kite Realty Group Trust lists Trussville I and Trussville II are centers with a total of 671,000 square feet of space off Chalkville Mountain Road. Those locations are the Trussville Crossings shopping centers, anchored by Walmart Supercenter and Sam’s Club. Other anchors in the area include Regal Cinema, Marshalls, PetSmart and Kohl’s. Kite would own 446,484 square feet of that space with an occupancy rate of 95.4 percent if the deal is completed.
The realty group also lists the Colonial Shoppes at Clay, where Publix is located off Old Springville Road, as the other local center it intends to purchase. The 66,165-square-foot center has 94.7 percent occupancy.
Kite Realty Group announced in a press release that the nine retail properties in Alabama, Florida, Georgia and Texas have an aggregate owned gross leasable area of about two million square feet for a gross aggregate purchase price of approximately $307 million in cash.
“This off-market portfolio acquisition enables us to add approximately two million square feet of high quality shopping centers to our portfolio,” said Kite Realty Group chairman and CEO John A. Kite. “These properties will complement those in our existing portfolio and provide us with an opportunity to strategically increase our footprint in our targeted markets. We believe there are significant value creation opportunities through the lease-up of vacant space, roll-over of below market rents, and the pursuit of redevelopment opportunities.”
The acquisition is expected to close in late 2013 or early 2014.
Kite Realty Group Trust Senior Financial Analyst Adam Basch said talking with specific retailers that could locate to the area will be part of the process if and when the trust closes on the properties.
Contact Gary Lloyd at news@trussvilletribune.com and follow him on Twitter @GaryALloyd.