Inland Diversified JV Buys Stake in 396 KSF Connecticut Retail Center
By Barbra Murray, Contributing Editor
Inland Diversified Real Estate Trust Inc. now owns a majority interest in The Crossing at Killingly Commons in Dayville Conn., having teamed up on the purchase of the 395,500-square-foot shopping center with Dayville Unit Investors L.L.C., an affiliate of the seller. The partners attributed a value of $60.2 million to the asset.
It was Ceruzzi Holdings L.L.C. that originally conceived The Crossing to serve as a regional shopping destination. The retail center made its debut in 2010, offering shoppers a well-anchored property featuring such national chains as Lowe’s Home Improvement and T.J. Maxx. And, according to the new co-owner, eager shoppers are plentiful in the area.
“The Crossing at Killingly Commons is ideally located near major employers … which together provide more than 27,000 jobs in the region,” Joe Cosenza, president of Inland Real Estate Acquisitions Inc., said in a prepared statement. “All these jobs contribute to higher than average household incomes of around $73,000 within 20 miles of the center, which provides a stable base of shoppers.”
However, The Crossing did not come unencumbered. The joint venture assumed existing debt on the property in the form of a $43.6 million loan from the Huntington National Bank. At closing, Inland Diversified and partner repaid $10.6 million of the debt and modified the interest and term on the loan.
Inland Diversified has been quite busy since the August 2012 completion of its “best efforts” initial public offering, which yielded $1.1 billion of investor capital. October has been particularly active. Earlier this month, the REIT announced its joint venture purchase of a majority interest in City Center, a 381,900-square-foot retail and multi-family in White Plains, N.Y., valued at $166.4 million. And at the beginning of October, the company purchased two portfolios encompassing six triple net leased, grocery-anchored properties for a total of $71.4 million.