Kite Realty Flies to Upscale Dallas Retail

The purchase of Colleyville Downs is the third for Kite since its $2.1 billion merger last summer with Inland Diversified Real Estate Trust Inc.

In an off-market transaction, Kite Realty Group has added a 201,000-square-foot retail center in metropolitan Dallas to its portfolio. The retail REIT purchased Colleyville Downs, a grocery-anchored Class A property in the affluent community of Colleyville, from Centennial Real Estate Co.

Colleyville Downs is 92 percent leased and features a newly built Whole Foods Market as one of its three anchor tenants. Additionally, it offers upside potential through lease-up and below-market rent opportunities, according to its new owners.

Colleyville Downs is one of three assets Kite Realty has purchased since its $2.1 billion merger with Inland Diversified Real Estate Trust Inc. in July 2014. The company is not precisely in binge-shopping mode; its 2015 guidance assumes a conservative $80 million of identified acquisition opportunities.

“The acquisition market remains extremely competitive and we intend to further enhance the quality of our portfolio even if that means acquiring less today for a longer term benefit going forward,” John Kite, the company’s chairman & CEO, said during its earnings call in February. “We’re putting out the deals that we’re actively engaged in tying up, and then we have got a whole year ahead of us to exceed that. And we obviously have a lot of capital.”