Inland Real Estate Acquisitions Inc. (IREA), the purchasing arm of Oak Brook, Ill.-based The Inland Real Estate Group of Companies, Inc., has acquired a $172 million retail portfolio located in Houston and League City, Texas from NewQuest Properties. The acquisition was made on behalf of Inland American Real Estate Trust Inc.
The five-property portfolio includes Bay Colony Town Center and Victory Lakes Town Center, both in League City; Cy Fair Town Center, Eldridge Lakes and Antoine Town Center in Houston; and Antoine Town Center in Houston.
The portfolio also includes a variety of multi-tenant and single-tenant assets with more than 710,000 sq. ft. of retail space. Four of the properties are developments that are adjacent to or are additions to assets that Inland American already owns.
The average occupancy for the portfolio is over 90 percent and its tenant lineup includes Kohl’s, Kroger, Lowe’s, Sports Authority, 24 Hour Fitness, Best Buy, Cinemark and Dollar Tree.
"This portfolio is a natural complement to our current properties in the region," said Jeff Manno, vice president of asset management for Inland American HOLDCO, in a statement. "These necessity-based shopping centers are the type of core real estate assets that fit our retail investment strategy. We believe this transaction will enhance our portfolio and be accretive to our earnings."
Prudential Mortgage Capital Co. provided financing for the acquired properties and other Texas assets in Inland American’s portfolio.
"Prudential and Inland American saw this as an opportunity to expand our relationship and complete a transaction that is a win-win for all parties," Matt Tice, vice president of IREA, said in a statement. Tice facilitated the transaction and financing.
With these transactions, Inland American now owns 60 shopping centers in Texas, totaling more than 5.5 million sq. ft.