Inland Real Estate Income Trust, Inc. is evaluating the purchase of a fee simple interest in Wedgewood Commons Shopping Center, a four building, 159,258 square foot retail center in Olive Branch, Mississippi.
The seller is SDC#1, LLC, an affiliate of StoneCrest Investments, LLC. The purchase price is approximately $33.6 million in cash, plus closing costs, which Inland does not believe will exceed $85,000.
The purchase includes the right to expand one of the four buildings by 12,059 square feet. The purchase does not include a Target “P Fresh” store that shadow-anchors Wedgewood Commons, which is 96 percent occupied and 100 percent leased to 25 and 28 tenants, respectively.
Olive Branch is part of the Memphis Tennessee metropolitan statistical area (MSA) and is considered a southeastern suburb of Memphis. Within a five mile radius, Olive Branch had a growth rate of 82.17 percent between 2000 and 2010.
The weighted-average remaining lease term for the tenants occupying the property is approximately eight years. The major tenants of the property are TJ Maxx, Home Goods, Michaels, Rack Room Shoes, AT&T, TCBY, GNC and Sports Clips.
The acquisition would be subject to an earnout component to the purchase price, meaning Inland will not pay approximately $6.8 million of the purchase price of the property at closing, although it will own the entire property.