UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: January 6, 2004
(Date of earliest event reported)
Inland Western Retail Real Estate Trust, Inc.
(Exact name of registrant as specified in the charter)
Maryland | 333-103799 | 42-1579325 |
(State or other jurisdiction of incorporation) | (Commission File No.) | (IRS Employer Identification No.) |
2901 Butterfield Road
Oak Brook, Illinois 60523
(Address of Principal Executive Offices)
(630) 218-8000
(Registrant's telephone number including area code)
Not Applicable
(Former name or former address, if changed since last report)
Item 2. Acquisition or Disposition of Assets
Hickory Ridge Shopping Center, Hickory, North Carolina
On January 9, 2004, we purchased an existing shopping center known as Hickory Ridge Shopping Center containing 310,360 gross leasable square feet. The center is located at Catawba Valley Road in Hickory, North Carolina.
We purchased this property from an unaffiliated third party. Our total acquisition cost was approximately $41,900,000. This amount may increase by additional costs which have not yet been finally determined. We expect any additional costs to be insignificant. Our acquisition cost was approximately $135 per square foot of leasable space.
We purchased this property with our own funds. However, we expect to place financing on the property at a later date.
We do not intend to make significant repairs and improvements to this property over the next few years. However, if we were to make any repairs or improvements, the tenants would be obligated to pay a substantial portion of any monies spent pursuant to the provisions of their respective leases.
Three tenants, Best Buy, Linens 'N Things and Kohl's, each lease more than 10% of the total gross leasable area of the property. The leases with these tenants require the tenants to pay base annual rent on a monthly basis as follows:
Base Rent | |||||
Approximate | Per Square | ||||
GLA Leased | % of Total | Foot Per | Lease | Term | |
Lessee | (Sq. Ft.) | GLA | Annum ($) | Beginning | To |
Best Buy | 45,000 | 14 | 10.75 | 07/99 | 01/14 |
Linens 'N Things | 35,000 | 11 | 10.50 | 07/00 | 06/15 |
Kohl's | 86,584 | 28 | 7.00 | 08/99 | 02/20 |
For federal income tax purposes, the depreciable basis in this property will be approximately $31,400,000. When we calculate depreciation expense for tax purposes, we will use the straight-line method. We depreciate buildings and improvements based upon estimated useful lives of 40 and 20 years, respectively.
Hickory Ridge Shopping Center was built in 1999. As of January 9, 2004, this property was 96% occupied, with a total 298,784 square feet leased to 19 tenants. The following table sets forth certain information with respect to those leases:
Approximate GLA Leased | Current Annual | Base Rent Per Square Foot | |||
Lessee | (Sq. Ft.) | Lease Ends | Rent ($) | Per Annum ($) | |
Old Navy | 25,000 | 08/04 | 212.500 | 8.50 | |
Sprint | 2,800 | 11/04 | 50,400 | 18.00 | |
Great Clips | 1,200 | 12/04 | 22,800 | 19.00 | |
Osaka | 2,100 | 01/05 | 40,950 | 19.50 | |
Thai Orchid | 2,800 | 01/05 | 53,200 | 19.00 | |
Tony's Pizza | 2,100 | 01/05 | 45,150 | 21.50 | |
Hallmark | 6,000 | 10/05 | 93,900 | 15.65 | |
Factory Mattress | 3,600 | 11/06 | 66,600 | 18.50 | |
Party City | 12,000 | 06/09 | 150,000 | 12.50 | |
Marshall's | 30,000 | 08/09 | 219,000 | 7.30 | |
Shoe Carnival | 12,000 | 01/10 | 129,000 | 10.75 | |
Family Christian Bookstore | 5,000 | 07/10 | 90,000 | 18.00 | |
The Avenue | 6,600 | 01/13 | 78,012 | 11.82 | |
Best Buy | 45,000 | 01/14 | 483,750 | 10.75 | |
Linens 'N Things | 35,000 | 06/15 | 367,500 | 10.50 | |
A.C. Moore | 21,000 | 12/15 | 248,850 | 11.85 | |
Kohl's | 86,584 | 02/20 | 606,088 | 7.00 | |
Dicks Sporting Goods | * | 01/21 | 185,000 | * | |
Babies R Us | * | 01/13 | 126,647 | * | |
* ground lease
In general, each tenant will pay its proportionate share of real estate taxes, insurance and common area maintenance costs, although the leases with some tenants may provide that the tenant's liability for such expenses is limited in some way, usually so that their liability for such expenses does not exceed a specified amount.
Cor West Plaza, New Britain, Connecticut
On January 6, 2004, we purchased an existing shopping center known as Cor West Plaza containing 115,011 gross leasable square feet. The center is located at 665 and 687 West Main Street in New Britain, Connecticut.
We purchased this property from an unaffiliated third party. Our total acquisition cost was approximately $33,000,000. This amount may increase by additional costs which have not yet been finally determined. We expect any additional costs to be insignificant. Our acquisition cost was approximately $287 per square foot of leasable space.
We purchased this property with our own funds. However, we expect to place financing on the property at a later date.
We do not intend to make significant repairs and improvements to this property over the next few years. However, if we were to make any repairs or improvements, the tenants would be obligated to pay a substantial portion of any monies spent pursuant to the provisions of their respective leases.
Three tenants, Super Stop and Shop, Liquor Depot and CVS Pharmacy, each lease more than 10% of the total gross leasable area of the property. The leases with these tenants require the tenants to pay base annual rent on a monthly basis as follows:
Base Rent | |||||
Approximate | Per Square | ||||
GLA Leased | % of Total | Foot Per | Lease | Term | |
Lessee | (Sq. Ft.) | GLA | Annum ($) | Beginning | To |
Super Stop & Shop | 68,073 | 59 | 26.00 | 05/03 | 05/28 |
CVS Pharmacy | 12,150 | 11 | 26.00 | 07/01 | 07/22 |
Liquor Depot | 14,000 | 12 | 14.00 | 08/01 | 08/11 |
For federal income tax purposes, the depreciable basis in this property will be approximately $24,750,000. When we calculate depreciation expense for tax purposes, we will use the straight-line method. We depreciate buildings and improvements based upon estimated useful lives of 40 and 20 years, respectively.
Cor West Plaza was built in phases between 1999 to 2003. As of January 6, 2004, this property was 100% occupied, with a total 115,011 square feet leased to 10 tenants. The following table sets forth certain information with respect to those leases:
Approximate GLA Leased | Current Annual | Base Rent Per Square Foot | ||
Lessee | (Sq. Ft.) | Lease Ends | Rent ($) | Per Annum ($) |
Subway | 1,500 | 08/04 | 18,702 | 12.47 |
Video One | 3,500 | 09/05 | 47,320 | 13.52 |
Rent-A-Center | 6,988 | 04/06 | 104,820 | 15.00 |
Cingular Wireless | 1,553 | 06/06 | 27,954 | 18.00 |
Webster Bank | 2,147 | 11/05 | 38,646 | 18.00 |
Papa Gino's | 3,000 | 02/11 | 60,000 | 20.00 |
Liquor Depot | 14,000 | 08/11 | 196,000 | 14.00 |
Frazier's Two Cleaners & Laundromat | 2,100 | 10/11 | 37,800 | 18.00 |
CVS Pharmacy | 12,150 | 01/22 | 315,900 | 26.00 |
Super Stop & Shop | 68,073 | 05/28 | 1,769,898 | 26.00 |
In general, each tenant will pay its proportionate share of real estate taxes, insurance and common area maintenance costs, although the leases with some tenants may provide that the tenant's liability for such expenses is limited in some way, usually so that their liability for such expenses does not exceed a specified amount.
Item 7. Financial Statements and Exhibits
- Financial Statements
To be subsequently filed.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
INLAND WESTERN RETAIL REAL ESTATE TRUST, INC.
By:/s/ Kelly Tucek
Name: Kelly Tucek
Title: Treasurer
Date: January 14, 2004