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: August 9, 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
Manchester Meadows, Town and Country, Missouri
On August 12, 2004, we purchased an existing shopping center known as Manchester Meadows, containing 454,102 gross leasable square feet (which includes 3,412 square feet of ground lease space). The center is located at 13901 Manchester Road in Town and Country, Missouri.
We purchased this property from an unaffiliated third party. Our total acquisition cost was approximately $56,481,000. 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 $124 per square foot of leasable space.
We purchased this property with our own funds. However, we expect to place financing on the property at a later date.
We do not intend to make significant repairs and improvements to this property over the next few years. However, if we were to make any repairs or improvements, the tenants would be obligated to pay a substantial portion of any monies spent pursuant to the provisions of their respective leases.
Two tenants, Wal-Mart and Home Depot, each lease more than 10% of the total gross leasable area of the property. The leases with these tenants require the tenants to pay base annual rent on a monthly basis as follows:
Base Rent | |||||
Approximate | Per Square | ||||
GLA Leased | % of Total | Foot Per | Lease | Term | |
Lessee | (Sq. Ft.) | GLA | Annum ($) | Beginning | To |
Wal-Mart | 154,717 | 34 | 7.00 | 01/95 | 01/15 |
Home Depot | 111,175 | 24 | 7.47 | 11/94 | 11/19 |
For federal income tax purposes, the depreciable basis in this property will be approximately $42,361,000. When we calculate depreciation expense for tax purposes, we will use the straight-line method. We depreciate buildings and improvements based upon estimated useful lives of 40 and 20 years, respectively.
Manchester Meadows was built in 1994 and 1995. As of August 1, 2004, this property was 96% occupied, with a total 437,702 square feet leased to 22 tenants. The following table sets forth certain information with respect to those leases:
Approximate GLA Leased | Current Annual | Base Rent Per Square Foot | ||
Lessee | (Sq. Ft.) | Lease Ends | Rent ($) | Per Annum ($) |
Sears Portrait Studio | 2,123 | 03/05 | 39,063 | 18.40 |
Linens 'N Things | 34,917 | 01/05 | 367,289 | 10.52 |
Payless Shoesource | 3,000 | 05/05 | 55,200 | 18.40 |
HobbyTown USA | 2,450 | 07/05 | 44,100 | 18.00 |
Chic Nails | 1,400 | 05/06 | 27,475 | 19.63 |
Town & Country Tobacco | 1,400 | 01/07 | 27,417 | 19.58 |
Fast Track Fitness | 3,000 | 02/07 | 55,500 | 18.50 |
United States Postal Service | 3,500 | 04/07 | 63,245 | 18.07 |
Cobblestone Shoe Repairs | 1,400 | 04/07 | 26,600 | 19.00 |
3 Day Blinds | 4,550 | 03/08 | 110,716 | 24.33 |
Art & Frame | 1,400 | 11/08 | 29,050 | 20.75 |
St. Louis Playscapes | 7,500 | 12/08 | 155,000 | 20.67 |
99 Cent Only Store | 3,000 | 01/09 | 51,000 | 17.00 |
Great Clips | 1,400 | 04/09 | 27,633 | 19.74 |
Memories Unlimited | 2,500 | 04/09 | 44,167 | 17.67 |
OfficeMax | 23,920 | 11/09 | 239,200 | 10.00 |
PETsMART | 27,438 | 03/10 | 249,228 | 9.08 |
Wal-Mart | 154,717 | 01/15 | 1,083,018 | 7.00 |
The Sports Authority | 40,500 | 11/14 | 324,000 | 8.00 |
Home Depot | 111,175 | 11/19 | 830,088 | 7.47 |
St. Louis Playscapes | 3,000 | 54,000 | 18.00 | |
Boston Chicken (Ground Lease) | 3,412 | 08/05 | 79,200 | N/A |
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.
The Village Shoppes at Simonton, Lawrenceville, Georgia
On August 9, 2004, we purchased a newly constructed shopping center known as The Village Shoppes at Simonton, containing 66,415 gross leasable square feet. The center is located at New Hope Road and Simonton Road in Lawrenceville, Georgia.
We purchased this property from an unaffiliated third party. Our total acquisition cost was approximately $13,749,000. 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 $207 per square foot of leasable space.
We purchased this property with our own funds. However, we expect to place financing on the property at a later date.
We do not intend to make significant repairs and improvements to this property over the next few years. However, if we were to make any repairs or improvements, the tenants would be obligated to pay a substantial portion of any monies spent pursuant to the provisions of their respective leases.
One tenant, Publix, will lease more than 10% of the total gross leasable area of the property. The lease with this tenant requires the tenant to pay base annual rent on a monthly basis as follows:
Base Rent | |||||
Approximate | Per Square | ||||
GLA Leased | % of Total | Foot Per | Lease | Term | |
Lessee | (Sq. Ft.) | GLA | Annum ($) | Beginning | To |
Publix | 44,271 | 67 | 10.95 | 05/04 | 05/24 |
For federal income tax purposes, the depreciable basis in this property will be approximately $10,312,000. When we calculate depreciation expense for tax purposes, we will use the straight-line method. We depreciate buildings and improvements based upon estimated useful lives of 40 and 20 years, respectively.
The Village Shoppes at Simonton was newly constructed in 2004. As of August 1, 2004, this property was 85% occupied with a total of 56,615 square feet leased to nine tenants. The following table sets forth certain information with respect to those leases:
Approximate GLA Leased | Current Annual | Base Rent Per Square Foot | ||
Lessee | (Sq. Ft.) | Lease Ends | Rent ($) | Per Annum ($) |
Dollar Store | 2,644 | 06/09 | 60,812 | 23.00 |
South Eastern Dry Cleaners | 1,500 | 07/09 | 42,000 | 28.00 |
Pak Mail Center | 1,400 | 07/09 | 35,000 | 25.00 |
Subway Real Estate Corp. | 1,400 | 07/09 | 32,900 | 23.50 |
Nails and Tanning | 1,200 | 07/09 | 30,000 | 25.00 |
Pizza Hut of America | 1,400 | 07/10 | 32,900 | 23.50 |
Supercuts | 1,400 | 08/09 | 33,600 | 24.00 |
New China | 1,400 | 08/09 | 32,200 | 23.00 |
Publix | 44,271 | 05/24 | 484,767 | 10.95 |
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 for Manchester Meadows. No financials will be filed for The Village Shoppes at Simonton, as the property was completed in June 2004 and there were no significant operations prior to our acquisition and therefore, do not require financial statements to be filed under Rule 3-14.
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/ Lori J. Foust
Name: Lori J. Foust
Title: Principal Accounting Officer
Date: August 16, 2004