NORTHBROOK, IL – Inland Real Estate Corporation (NYSE:IRC) of Oakbrook, Ill., and Pine Tree Institutional Realty, LLC of Lake Bluff, Ill., have formed a joint venture partnership to develop $100 million in new shopping centers per year over the next four years, primarily in the Midwest. The first phase of the new venture, Pine Tree-Inland Development I, LLC, will be managed and funded by both partners. Pine Tree Commercial Realty, LLC, an affiliate of Pine Tree Institutional, will be providing day to day site selection, acquisition, development and leasing services, and Inland will be actively advising the venture in all areas of acquisition, leasing and tenant and community relationships.
About the new venture, Inland Chief Operating Officer Mark Zalatoris said, “We’ve worked with Pine Tree over the past 10 years, so we are very familiar with their track record of developing projects that became good investments for us and enhancements to the Midwest communities we’re interested in.” Mr. Zalatoris added that Inland typically acquires properties that it believes are well tenanted, well located and ranging in square footage from 75,000 to 300,000 square feet. He said this venture will allow the company to explore ground-up opportunities. “We believe that expanding into retail development is a natural extension of our core business,” he said, “and we also hope that some of these developments may end up in our portfolio on a long term basis.”
According to Tim Roe, a President of Pine Tree Commercial Realty, the Pine Tree-Inland venture was a natural outcome. “We already have a good working relationship with Inland. Not only is there synergy and a nice chemistry between our companies, but we genuinely like each other,” he said. “They have experience in acquiring, managing, selling and leasing shopping centers, and have a long track record in developing retail properties in Inland’s core market area.”
Mr. Roe said that Pine Tree-Inland Development has already earmarked three projects that are under contract: a property in Ft. Wayne, Ind., across from a lifestyle center on Illinois & Thomas Roads, estimated to close in April; a property in St. Joseph, Mo.; and a property in suburban Indianapolis. He said that the JV is not looking at vacant land in both urban and suburban areas as well as secondary markets depending on the opportunity. “We’ll look at several factors based on our combined experience that tell us which areas are ripe for growth in retail or which opportunities make sense.”
John Haahr and Travis King of Silver Portal Capital of San Diego advised both parties in the venture negotiation.
Inland Real Estate Corporation, headquartered in Oak Brook, Ill., is a self-administered and self-managed publicly traded real estate investment trust that owns interests in 147 neighborhood, community and single-tenant retail centers located primarily in the Midwestern United States.
Pine Tree Institutional Realty, LLC, an affiliate of Pine Tree Commercial Realty, is involved in the acquisition, ownership and disposition of real estate assets. Pine Tree Commercial Realty, LLC is a full-service real estate development company headquartered in Northbrook, Ill., with branch offices in Indianapolis, Minneapolis, and Kansas City. Since its founding in 1995, Pine Tree has acquired and developed more than 50 properties valued at over $350 million. Projects in both divisions are primarily located in the Midwest, although they have recently expanded into the Western and Southeastern U.S.
