Inland Set to Close on $139.7M Acquisition of Settlers Ridge Retail Center in Pittsburgh

Screen Shot 2015-09-28 at 1.51.59 PMInland Real Estate has entered into an agreement to acquire the 472,572 square foot retail center known as Settlers Ridge in Pittsburgh, PA  for $139.7 million in cash, plus closing costs.

Constructed from 2008 through 2011, Settlers Ridge is 98.5 percent occupied and leased to 43 tenants.

Inland’s anticipated closing date is this Friday, October 2, 2015.

Located at the hub of more than 4.5 million square feet of retail space, Settler’s Ridge is the largest concentration of space outside of Downtown Pittsburgh, according to the website of Boston-based The Wilder Cos. The Wilder Cos. handles management and leasing at the shopping center for O’Connor/Real Vest Retail Holding Co. LLC of New York, according to wikipedia.com.

In March 2011, triblive.com reported that O’Connor/Real Vest Retail Holding Co. LLC of New York “is a partnership formed by O’Connor Capital Partners and Waffra Investment Advisory Group, which teamed with Wilder to complete the Settlers Ridge transaction.” The partnership also purchased two other properties as part of that deal, including Milford Marketplace in Milford, CT.

Inland says it will also purchase Milford Marketplace for $34 million.

Two tenants occupy more than 10 percent of the total gross leasable area of Settler’s Ridge.

Giant Eagle, an operator of supermarkets in Pennsylvania, Ohio, West Virginia and Maryland, leases 129,340 square feet, or approximately 27.4% of the total gross leasable area of the property, and pays annual base rent of approximately $1.805 million, The Giant Eagle lease expires on December 31, 2034, subject to 14 renewal options of five years each with escalating rents.

Cinemark, the movie theatre chain, leases 53,236 square feet, or approximately 11.3% of the total gross leasable area of the property, and pays annual base rent of approximately $1.291 million. The Cinemark lease expires on October 31, 2024, subject to two renewal options of five years each and one renewal option of four years with escalating rents.

In addition to Giant Eagle and Cinemark, the tenants leasing at least 10,000 square feet at Settler’s Ridge are , LA Fitness, Barnes & Noble, REI, Ross, Michael’s, Pet Supplies Plus, ULTA, Shoe Carnival and Cadillac Ranch.

Inland Real Estate Acquisitions will assign the contract rights to acquire the property to Inland Real Estate Income Trust, Inc or one of its subsidiaries.

Real estate taxes assessed on the property for the fiscal year ended December 31, 2014, were approximately $1,435,800. The amount of real estate taxes assessed was equal to the property’s assessed value multiplied by an average tax rate of 2.42 percent.