Inland, MAB Launch $325M Retail Development Plan for Southeast

The joint venture’s five-year development plan will target demographically strong metropolitan areas in the Carolinas, Georgia, Florida, Virginia and Washington, D.C., and is expected to result in the construction of as many as 20 new grocery-anchored shopping centers.

Inland Real Estate Corp. and MAB American Retail Partners, L.L.C., have formed a joint venture to develop grocery-anchored shopping centers in select markets throughout the Southeast.

The joint venture’s five-year development plan will target demographically strong metropolitan areas in the Carolinas, Georgia, Florida, Virginia and Washington, D.C., and is expected to result in the construction of as many as 20 new grocery-anchored shopping centers with a total market value of up to $325 million.

“Our development joint venture with MAB provides us with the opportunity to develop and acquire brand-new, high quality, grocery-anchored shopping centers after stabilization and at a discount to market value, and allows us to efficiently enter the vibrant southeastern region,” Mark Zalatoris, Inland Real Estate Corp.’s president and CEO, said in a statement. “We are very excited to enter into this joint venture, which furthers our strategic goals to enhance the quality and stability of our operating platform through growth and diversification of our geographic footprint and retailer base.”

Under the agreement, Inland Real Estate will have exclusive rights to all grocery-anchored, build-to-suit opportunities in the southeastern United States sourced by MAB. Upon site approval by Inland Real Estate, it will provide 90 percent of the equity required to fund approved project costs. MAB will be responsible for the remaining 10 percent of the equity, plus venture management, sourcing and acquisition of sites, project financing and all property and development duties.

A typical project likely will consist of a 50,000-square-foot grocery store with approximately 20,000 square feet of additional retail space. The agreement also calls for Inland Real Estate to purchase each grocery-anchored center at a discount to fair market value after stabilization.

It’s been a busy few months for Inland Real Estate. In September, the company paid $24.2 million to acquire three Walmart-anchored shopping centers in the Milwaukee area; and in October, it acquired a Cleveland-area shopping center for $24.9 million.