OAK BROOK, IL—Inland Real Estate Corp. has agreed to buy out its partner, the New York State Teachers’ Retirement System, on a 13-property Midwest retail portfolio for $121 million.

Inland will acquire NYSTRS’ 50 percent ownership in the IN Retail Fund LLC., a portfolio that consists of 11 neighborhood, community and power shopping centers located in the Chicagoland area; one neighborhood retail center in a suburb of Minneapolis and one community retail center located near Racine, Wis. The properties total about 2.3 million square feet of gross leasable area, with an estimated fair value of approximately $395.6 million, according to Inland. Major properties in the portfolio include the 592,495-sq.-ft. Orland Park Place in Orland Park, Ill.; the 216,485-sq.-ft. Randall Square in Geneva, Ill. and the 207,452-sq.ft. Woodfield Commons in Schaumburg, Ill.

Main tenants at the properties include Old Navy, Marshall’s, Barnes & Noble, Bed Bath & Beyond, PetSmart, Toys R Us, Roundy’s, Safeway, AB Acquisitions (Jewel Food Stores), CarMax and TJX Cos. The portfolio was 97.5 percent leased.

“The joint ventures we have established with institutional partners such as NYSTRS have been instrumental in advancing our growth objectives,” said Mark Zalatoris, president and CEO, in a statement. “Since its formation in 2004, the IRC-NYSTRS joint venture has added more than $300 million in gross value to our total portfolio. This venture has been a capital-efficient way for the company to acquire premier retail assets while enhancing our yield on investment. However, the opportunity to acquire NYSTRS’s interest at this time advances our strategic goals to increase the size and quality of our consolidated portfolio, simplify our ownership structure and strengthen our balance sheet.”