Inland Western Pays $189M for Five NY-Area Assets

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OAK BROOK, IL-Inland Western Retail Real Estate Trust’s most recent buying spree east of the Mississippi River has added five New York and Connecticut centers totaling one million sf for $188.7 million. The centers formerly owned by Connecticut-based investor Lou Ceruzzi have minimal vacancies, with Home Depot an anchor tenant at two of them.

The priciest among the new assets is the 220,631-sf Gardiner Manor Mall in Bay Shore, NY, which cost $65.2 million or $296 per sf. A King Kullen supermarket, Linens ‘n Things, Old Navy, Staples and Michaels are among the 16 tenants in the center, one of two Long Island properties acquired.

Home Depot, Target and Price Chopper are the largest of 19 tenants at the 438,097-sf Wilton Square center in Saratoga Springs, NY, north of Albany. Inland Western Retail Real Estate is paying $47.1 million for that property.

In Poughkeepsie, NY, the price is $42.6 million for the 246,366-sf Mid-Hudson Center or $173 per sf. Home Depot also is an anchor tenant there, along with a Stop & Shop. Also acquired was a 74,170-sf Crown Theater in Hartford, CT for $17 million and 61,639-sf Bed Bath & Beyond Plaza in Westbury, NY for $16.6 million.

Although Inland Western Retail Real Estate paid cash for the properties, it immediately used them as collateral along with two other assets previously acquired from Ceruzzi for a $232.4-million mortgage at a 4.18% initial interest rate, according to a filing by the REIT with the Securities and Exchange Commission.