BOISE, ID – Pine Tree-Inland Development I LLC, a joint venture between Pine Tree Institutional Realty of Northbrook, Ill., and Inland Real Estate Corporation of Oak Brook, Ill., recently closed on its first Idaho acquisition. Pine Tree Principals Barry Herring and Peter Borzak announced the purchase of a former Kmart store anchoring Southshore Marketplace, a fifteen-year-old neighborhood center in Boise, Idaho. Plans are to spend $13 million to redevelop the 88,000 square foot Kmart building into 91,400 square feet of new retail.
According to Tim Roe, President of Pine Tree Commercial Realty, which is handling the development, construction, leasing, and property management for the project, the firm is finalizing letters of intent from three national mid-box retail chains that will fill 85,000 square feet of the project. “There will also be small shop space available,” he says.
Adjacent to the Pine Tree project in the same community shopping center, but separately owned, is one of the top-performing Albertson’s in the city, as well as other in-line shops. “We’re in a great place to develop new retail,” says Roe. “Construction will entail a partial tear-down of the former Kmart building, as well as new construction to expand it.” Pine Tree Commercial intends to begin construction in spring 2008, with completion estimated for fall 2008.
A Bridge to the Future
Roe says that the innate value of the project is tied to a new $23 million bridge being erected by the city that, upon completion in 2009, will span the Boise River and link the center with Boise’s undeveloped low-mountain region, which is planned for 5,000 high-income home sites. “That will almost triple the traffic volume along Parkcenter Boulevard in front of the center,” Roe says, “so, the future growth in this part of the city makes this a great project for our investors.”
Roe says that the pinpointing of this kind of potential is key to Pine Tree’s involvement with Inland Real Estate. “We’re small and agile enough to turn the deals quickly for a larger investment partner. For example, after identifying the potential for this project, we were able to close on the property within 60 days.”
According to Pine Tree Vice President Todd Zinsmaster, who will spearhead the development, “We want to make this the best retail center in Boise.” He says Pine Tree anticipates additional acquisitions and development in the Boise trade area and surrounding community. “So, we’re looking forward to making a good impression with the community here.”
In the Pine Tree transaction, Mark Bottles of Mark Bottles Real Estate Services in Boise represented the seller, Roger H. Allen of Avest Commercial Properties in Boise. According to Roe, Bottles will also be engaged to represent Pine Tree for leasing services.
Pine Tree-Inland Development I LLC is a joint venture between Pine Tree Institutional Realty and Inland Real Estate Corporation.
Pine Tree Institutional Realty LLC, headquartered in Northbrook, Ill., is involved in the acquisition, ownership and disposition of real estate assets. Its affiliate, Pine Tree Commercial Realty LLC is a full-service real estate development company, also based in Northbrook, with branch offices in Indianapolis, Minneapolis, and Kansas City. Since its founding in 1995 by Principals Barry Herring and Peter Borzak, Pine Tree has acquired and developed more than 50 properties valued at over $450 million. The company’s projects, primarily located in the Midwest, are now expanding into the Western and Southeastern U.S.
Inland Real Estate Corporation (NYSE:IRC), 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.
WEB LINKS for further research:
Pine Tree Commercial Realty: www.pinetreecommercial.com
Inland Real Estate Corporation: www.inlandrealestate.com
PRESS CONTACTS representing Pine Tree Institutional Realty, Pine Tree Commercial Realty and Pine Tree-Inland Development I, LLC:
DODIER & COMPANY
(800) 970-7392 or (520) 299-1000