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Zalatoris
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OAK BROOK, IL-Inland Real Estate Corp., based here, is
forming a joint venture with Pine Tree Institutional
Realty LLC, headquartered in Northbrook, IL, to develop
shopping centers. The joint venture has agreed to
develop $100 million in new shopping centers per year
for the next four years, says Mark Zalatoris, chief
operating officer for Inland Real Estate Corp.
Pine Tree Commercial Realty LLC, an affiliate of Pine
Tree Institutional Realty LLC, will handle site
selection, acquisition, development and some leasing
services. Besides providing capital, Inland will assist
with leasing for “mid-box and local small tenants,”
Zalatoris says. Developers tend to specialize more in
signing the major big box tenants with it “taking a
little bit long to completely lease up the center with
complimentary smaller tenants,” he says. “Jointly, we
can complete the development faster.”
The shopping center developments will primarily be in
the Midwest and will generally range in size from 75,000
sf to 300,000 sf, and three projects are already planned
for this year. The joint venture recently closed on land
in Fort Wayne, IN. The approximate $37 million
development will be about 300,000 sf and have a “big
box” anchor that will occupy approximately 100,000-sf,
Zalatoris tells GlobeSt.com. Zalatoris says they were
still in discussions with an anchor and could not
disclose the retailer. Construction should commence this
summer with the first main tenant to open late this year
or early next year. The joint venture is also “actively
pursuing” developments in suburban Indianapolis and St.
Joseph, MO.
Inland has generally purchased shopping centers after
they have already been developed and stabilized. Inland
plans to own the shopping centers long-term, Zalatoris
says. The firm plans to buy out the partner at a cost
lower than it would be if Inland was purchasing a fully
developed shopping center and receive “above market
rates of return,” he says.
While Inland has joined up with developers before for
single projects, “Pine Tree is the first one we have
made a longer term commitment to,” Zalatoris says.
Inland has worked with Pine Tree on various projects for
more than 10 years and has purchased about a half-dozen
properties from the company, he says. Pine Tree has
acquired more than 50 properties valued at more than
$450 million since its founding in 1995. John Haahr and
Travis King with Silver Portal Capital of San Diego,
advised both parties in the negotiations for the joint
venture. |
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