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: October 5, 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)
Check the appropriate box below if the Form 8-K filing in intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.01 Completion of Acquisition or Disposition of Assets.
Bed, Bath & Beyond Plaza, Miami, Florida
On October 5, 2004, we purchased a shopping center newly constructed during 2003 and 2004 known as Bed, Bath & Beyond Plaza, containing 97,447 gross leasable square feet. This center has entered into a 65-year ground lease with the owner of the real property. We are not acquiring the underlying real property but only the buildings on the real property and will continue to be under a 65 year ground lease. The center is located at Northwest 107th Avenue and Northwest 19th Street in Miami, Florida.
We purchased this center from an unaffiliated third party. Our total acquisition cost was approximately $20,350,000. 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 $209 per square foot of leasable space.
We purchased this center with our own funds. However, we expect to place financing on the center at a later date.
We do not intend to make significant repairs and improvements to this center over the next few years. However, if we were to make any repairs or improvements, the tenants would be obligated to pay a substantial portion of any monies spent pursuant to the provisions of their respective leases.
Four tenants, Bed, Bath & Beyond, Office Depot, Pier 1 Imports and Party City, will lease more than 10% of the total gross leasable area of the center. The leases with these tenants require the tenant to pay base annual rent on a monthly basis as follows:
Base Rent | |||||
Approximate | Per Square | ||||
GLA Leased | % of Total | Foot Per | Lease | Term | |
Lessee | (Sq. Ft.) | GLA | Annum ($) | Beginning | To |
Bed, Bath & Beyond | 28,053 | 29 | 14.80 | 03/04 | 01/20 |
Office Depot | 16,175 | 17 | 23.32 | 08/04 | 08/09 |
Pier 1 Imports | 10,582 | 11 | 27.65 | 11/03 | 02/14 |
Party City | 10,930 | 11 | 18.12 | 12/03 | 08/14 |
For federal income tax purposes, the depreciable basis in this center will be approximately $15,263,000. When we calculate depreciation expense for tax purposes, we will use the straight-line method. We depreciate buildings and improvements based upon estimated useful lives of 40 and 20 years, respectively.
Bed, Bath & Beyond Plaza is a newly constructed center completed during 2003 and 2004. As of September 1, 2004, the property was 100% leased to 16 tenants. The following table sets forth certain information with respect to those leases:
Approximate GLA Leased | Current Annual | Base Rent Per Square Foot | ||
Lessee | (Sq. Ft.) | Lease Ends | Rent ($) | Per Annum ($) |
Sally Beauty Supplies | 1,368 | 05/09 | 40,632 | 29.70 |
A+ Nails | 1,301 | 05/09 | 41,333 | 31.77 |
Bo Concept | 5,100 | 06/09 | 69,193 | 13.57 |
Office Depot | 16,175 | 08/09 | 377,201 | 23.32 |
Young Eye Associates | 1,299 | 08/09 | 36,372 | 28.00 |
Cold Stone Creamery | 1,592 | 09/09 | 48,556 | 30.50 |
Pier 1 Imports | 10,582 | 02/14 | 292,621 | 27.65 |
Starbucks | 1,402 | 03/14 | 55,382 | 39.50 |
Sprint PCS | 3,622 | 12/10 | 118,657 | 32.76 |
Moe's Southwestern Grill | 2,400 | 05/14 | 72,072 | 30.03 |
Doral Dentist Partners | 1,707 | 07/14 | 25,523 | 14.95 |
Party City | 10,930 | 08/14 | 198,052 | 18.12 |
Bed, Bath & Beyond | 28,053 | 01/20 | 415,184 | 14.80 |
Fuddruckers | 6,000 | * | 192,444 | 32.07 |
Quiznos | 1,360 | * | 38,082 | 28.00 |
Cargo Kids! | 4,556 | * | 129,406 | 28.40 |
* Lease term information is not currently available.
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 9.01. Financial Statements and Exhibits
- Financial Statements
No financials will be filed for Bed, Bath & Beyond Plaza as this property does not require financial statements under Rule 3-14 of the Securities and Exchange Commission Regulation S-X.
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: October 5, 2004