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 16, 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
La Plaza Del Norte, San Antonio, Texas
On January 21, 2004, we purchased an existing shopping center known as La Plaza Del Norte, containing 320,362 gross leasable square feet. The center is located at 125 Northwest Loop 410, in San Antonio, Texas.
We purchased this property from an unaffiliated third party. Our total acquisition cost was approximately $59,143,000. 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 $185 per square foot of leasable space.
We purchased this property with our own funds. However, we expect to place financing on the property at a later date.
We do not intend to make significant repairs and improvements to this property over the next few years. However, if we were to make any repairs or improvements, the tenants would be obligated to pay a substantial portion of any monies spent pursuant to the provisions of their respective leases.
Two tenants, Oshmans and Best Buy, each lease more than 10% of the total gross leasable area of the property. The leases with these tenants require the tenant to pay base annual rent on a monthly basis as follows:
Base Rent | |||||
Approximate | Per Square | ||||
GLA Leased | % of Total | Foot Per | Lease | Term | |
Lessee | (Sq. Ft.) | GLA | Annum ($) | Beginning | To |
Oshmans | 65,017 | 20 | 11.61 | 09/96 | 01/17 |
Best Buy | 58,000 | 18 | 14.75 | 09/96 | 01/12 |
For federal income tax purposes, the depreciable basis in this property will be approximately $44,360,000. When we calculate depreciation expense for tax purposes, we will use the straight-line method. We depreciate buildings and improvements based upon estimated useful lives of 40 and 20 years, respectively.
La Plaza Del Norte was built in 1996 and 1999. As of January 20, 2004, this property was 93% occupied, with a total 297,287 square feet leased to 17 tenants. The following table sets forth certain information with respect to those leases:
Approximate GLA Leased | Current Annual | Base Rent Per Square Foot | ||
Lessee | (Sq. Ft.) | Lease Ends | Rent ($) | Per Annum ($) |
Half Price Books | 8,000 | 10/04 | 84,000 | 10.50 |
Lifeway Christian | 6,000 | 11/06 | 132,000 | 22.00 |
Supercuts | 1,295 | 11/06 | 33,670 | 26.00 |
Pearle Vision | 3,500 | 12/06 | 120,750 | 34.50 |
Ross Dress for Less | 28,438 | 01/07 | 288,646 | 10.15 |
Office Max | 23,229 | 04/07 | 261,326 | 11.25 |
DSW | 22,000 | 04/07 | 374,000 | 17.00 |
All Battery Center | 1,600 | 05/07 | 36,800 | 23.00 |
Approximate GLA Leased | Current Annual | Base Rent Per Square Foot | ||
Lessee | (Sq. Ft.) | Lease Ends | Rent ($) | Per Annum ($) |
Jazzy Beans Cafe | 2,605 | 01/08 | 52,100 | 20.00 |
Successories | 1,200 | 09/08 | 26,400 | 22.00 |
Game Stop | 2,006 | 12/08 | 52,156 | 26.00 |
David's Bridal | 12,000 | 11/09 | 187,240 | 15.60 |
Petco | 13,650 | 11/11 | 278,187 | 20.38 |
Cost Plus | 18,900 | 01/12 | 302,400 | 16.00 |
Best Buy | 58,000 | 01/12 | 855,500 | 14.75 |
Bealls | 29,847 | 01/14 | 194,006 | 6.50 |
Oshmans | 65,017 | 01/17 | 754,847 | 11.61 |
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.
Super Valu Shopping Center, Severn, Maryland
On January 20, 2004, we purchased an existing shopping center known as Super Valu Shopping Center, containing 61,817 gross leasable square feet. The center is located at 7858 Quarterfield in Severn (Annapolis), Maryland.
We purchased this property from an unaffiliated third party. Our total acquisition cost was approximately $11,031,000. 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 $178 per square foot of leasable space.
We purchased this property with our own funds. However, we expect to place financing on the property at a later date.
We do not intend to make significant repairs and improvements to this property over the next few years. However, if we were to make any repairs or improvements, the tenants would be obligated to pay a substantial portion of any monies spent pursuant to the provisions of their respective leases.
One tenant, Shoppers Food Warehouse, leases more than 10% of the total gross leasable area of the property. The lease with this tenant requires the tenant to pay base annual rent on a monthly basis as follows:
Base Rent | |||||
Approximate | Per Square | ||||
GLA Leased | % of Total | Foot Per | Lease | Term | |
Lessee | (Sq. Ft.) | GLA | Annum ($) | Beginning | To |
Shoppers Food Warehouse | 58,217 | 94 | 14.00 | 09/99 | 09/19 |
For federal income tax purposes, the depreciable basis in this property will be approximately $8,273,000. When we calculate depreciation expense for tax purposes, we will use the straight-line method. We depreciate buildings and improvements based upon estimated useful lives of 40 and 20 years, respectively.
Super Valu Shopping Center was built in 1999. As of January 20, 2004, this property was 100% occupied, with a total 61,817 square feet leased to three tenants. The following table sets forth certain information with respect to those leases:
Approximate GLA Leased | Current Annual | Base Rent Per Square Foot | ||
Lessee | (Sq. Ft.) | Lease Ends | Rent ($) | Per Annum ($) |
Great Clips | 1,200 | 12/05 | 27,537 | 22.95 |
AZZ Cleaners | 2,400 | 12/07 | 55,073 | 22.95 |
Shoppers Food Warehouse | 58,217 | 09/19 | 815,038 | 14.00 |
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.
Larkspur Landing, Larkspur, California
On January 19, 2004, we purchased an existing shopping center known as Larkspur Landing, containing 173,230 gross leasable square feet. The center is located at 2257 Larkspur Landing Circle, in Larkspur, California.
We purchased this property from an unaffiliated third party. Our total acquisition cost was approximately $61,147,000. 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 $353 per square foot of leasable space.
We purchased this property with our own funds. However, we expect to place financing on the property at a later date.
We do not intend to make significant repairs and improvements to this property over the next few years. However, if we were to make any repairs or improvements, the tenants would be obligated to pay a substantial portion of any monies spent pursuant to the provisions of their respective leases.
One tenant, Bed, Bath & Beyond, leases more than 10% of the total gross leasable area of the property. The lease with this tenant requires the tenant to pay base annual rent on a monthly basis as follows:
Base Rent | |||||
Approximate | Per Square | ||||
GLA Leased | % of Total | Foot Per | Lease | Term | |
Lessee | (Sq. Ft.) | GLA | Annum ($) | Beginning | To |
Bed, Bath & Beyond | 42,318 | 24 | 20.50 | 12/02 | 01/18 |
For federal income tax purposes, the depreciable basis in this property will be approximately $45,860,000. When we calculate depreciation expense for tax purposes, we will use the straight-line method. We depreciate buildings and improvements based upon estimated useful lives of 40 and 20 years, respectively.
Larkspur Landing was built in 1978 and renovated in 2001. As of January 19, 2004, this property was 88% occupied, with a total 151,704 square feet leased to 34 tenants. The following table sets forth certain information with respect to those leases:
Approximate GLA Leased | Current Annual | Base Rent Per Square Foot | ||
Lessee | (Sq. Ft.) | Lease Ends | Rent ($) | Per Annum ($) |
GNC | 1,698 | 01/04 | 33,892 | 19.96 |
Avanti | 1,115 | 03/04 | 28,800 | 25.83 |
LL Pet Clinic | 1,141 | 04/04 | 33,867 | 29.68 |
Roadrunner Burrito | 800 | 06/04 | 23,957 | 29.95 |
Marin Visitor Bureau | 720 | 06/04 | 12,000 | 16.67 |
Sushi Ko | 1,709 | 08/04 | 51,270 | 30.00 |
Golden Gate | 3,287 | 08/04 | 30,010 | 9.13 |
Allstate Ins. | 405 | 11/04 | 13,365 | 33.00 |
Spoetech | 805 | 03/05 | 16,503 | 20.50 |
24 Hour Fitness | 14,559 | 03/05 | 298,464 | 20.50 |
24 Hour Fitness | 2,480 | 03/05 | 60,462 | 24.38 |
Asher Clinic | 5,791 | 04/05 | 152,477 | 26.33 |
Redhill | 2,688 | 07/05 | 69,350 | 25.80 |
Jaeger | 1,500 | 07/05 | 54,732 | 36.49 |
Oliver Allen Corp. | 9,392 | 10/05 | 242,313 | 25.80 |
Robert Brugger | 880 | 06/06 | 18,480 | 21.00 |
Maxwell Cleaners | 2,748 | 09/06 | 100,568 | 36.60 |
Norman Mahan Jewelers | 1,333 | 01/07 | 43,669 | 32.76 |
Determined Productions | 5,583 | 03/07 | 303,491 | 54.36 |
Determined Productions | 5,602 | 03/07 | 304,524 | 54.36 |
Shoes & Repair | 807 | 03/07 | 23,564 | 29.20 |
Ragged Sailor | 1,200 | 04/07 | 35,136 | 29.28 |
LL Optomery | 1,165 | 07/07 | 30,243 | 25.96 |
Bay Area Wireless | 610 | 04/08 | 23,790 | 39.00 |
American Nails | 745 | 06/08 | 23,691 | 31.80 |
AAA | 5,245 | 07/08 | 169,938 | 32.40 |
Togo's Eatery | 1,625 | 07/08 | 36,205 | 22.28 |
Timothy Bricca DD | 1,064 | 07/08 | 35,112 | 33.00 |
All California | 3,359 | 07/08 | 114,172 | 33.99 |
Weight Watchers | 1,291 | 07/08 | 61,219 | 47.42 |
Cooper Alley | 2,000 | 11/08 | 103,840 | 51.92 |
Marin Brewing Co. | 5,978 | 03/11 | 190,219 | 31.82 |
Fidelity | 7,232 | 07/11 | 459,955 | 63.60 |
Yoga Studios | 6,150 | 10/12 | 184,500 | 30.00 |
Bed, Bath & Beyond | 42,318 | 01/18 | 867,519 | 20.50 |
Noonan's Restaurant | 6,679 | 12/18 | 222,878 | 33.37 |
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.
North Ranch Pavilions, Thousand Oaks, California
On January 16, 2004, we purchased an existing shopping center known as North Ranch Pavilions, containing 62,900 gross leasable square feet. The center is located at 1125-85 Lindero Road, in Thousand Oaks, California.
We purchased this property from an unaffiliated third party. Our total acquisition cost was approximately $18,468,000. 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 $294 per square foot of leasable space.
We purchased this property with our own funds. However, we expect to place financing on the property at a later date.
We do not intend to make significant repairs and improvements to this property over the next few years. However, if we were to make any repairs or improvements, the tenants would be obligated to pay a substantial portion of any monies spent pursuant to the provisions of their respective leases.
One tenant, Savy Salon, leases more than 10% of the total gross leasable area of the property. The lease with this tenant requires the tenant to pay base annual rent on a monthly basis as follows:
Base Rent | |||||
Approximate | Per Square | ||||
GLA Leased | % of Total | Foot Per | Lease | Term | |
Lessee | (Sq. Ft.) | GLA | Annum ($) | Beginning | To |
Savy Salon | 6,500 | 10 | 25.20 | 04/00 | 03/07 |
For federal income tax purposes, the depreciable basis in this property will be approximately $13,850,000. When we calculate depreciation expense for tax purposes, we will use the straight-line method. We depreciate buildings and improvements based upon estimated useful lives of 40 and 20 years, respectively.
North Ranch Pavilions was built in 1992. As of January 16, 2004, this property was 86% occupied, with a total 53,996 square feet leased to 23 tenants. The following table sets forth certain information with respect to those leases:
Approximate GLA Leased | Current Annual | Base Rent Per Square Foot | ||
Lessee | (Sq. Ft.) | Lease Ends | Rent ($) | Per Annum ($) |
2 For 1 Photo | 1,068 | 05/04 | 23,803 | 22.33 |
Kay's Nails | 1,028 | 09/04 | 24,178 | 23.52 |
Prudential Realty | 3,379 | 11/04 | 95,287 | 28.20 |
Ilene's Boutique | 2,105 | 12/04 | 51,235 | 24.34 |
Seta's Shoes | 1,088 | 05/05 | 19,548 | 18.00 |
Walton's Portraits | 1,300 | 08/06 | 28,964 | 22.28 |
Malibu Gym | 3,040 | 10/06 | 54,720 | 18.00 |
Dance Trends | 2,338 | 12/06 | 40,190 | 17.19 |
Bank of America | 4,500 | 12/06 | 172,980 | 38.44 |
Clubhous Cleaners | 1,505 | 12/06 | 43,765 | 29.08 |
Cookies by Design | 1,353 | 01/07 | 31,822 | 23.52 |
Andi's Hallmark | 3,740 | 02/07 | 67,320 | 18.00 |
State Farm Insurance | 1,025 | 03/07 | 22,096 | 21.60 |
Savy Salon | 6,500 | 03/07 | 163,800 | 25.20 |
Tae Kwon Do Academy | 1,512 | 07/07 | 33,566 | 22.20 |
Treasured Memories | 3,691 | 08/07 | 44,734 | 12.12 |
Total Body Fitness | 2,086 | 10/07 | 37,548 | 18.00 |
Postal Club | 1,086 | 12/07 | 24,369 | 22.44 |
Rustico Ristorante | 3,495 | 08/11 | 91,673 | 26.23 |
We Frame It | 1,526 | 09/11 | 34,609 | 22.68 |
Lamppost Pizza | 3,600 | 11/11 | 101,088 | 28.08 |
Sushi Tei | 1,725 | 01/12 | 51,129 | 29.64 |
North Ranch Dentistry | 1,306 | 10/13 | 38,396 | 29.40 |
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 27, 2004