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: February 1, 2005
(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.
Cottage Plaza, Pawtucket, Rhode Island
On February 2, 2005, we purchased a newly constructed shopping center known as Cottage Plaza, containing 83,903 leasable square feet (which includes 6,540 square feet of ground lease space). The center is located at 380 Cottage Street in Pawtucket, Rhode Island.
We purchased this property from an unaffiliated third party. Our total acquisition cost was approximately $23,440,000. 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 $279 per square foot of leasable space.
We purchased this property with our own funds. However, we expect to place financing on the property at a later date.
We do not intend to make significant repairs and improvements to this property over the next few years. However, if we were to make any repairs or improvements, the tenants would be obligated to pay a substantial portion of any monies spent pursuant to the provisions of their respective leases.
One tenant, Stop and Shop, leases more than 10% of the total gross leasable area of the property. The lease with this tenant requires the tenant to pay base annual rent on a monthly basis as follows:
Base Rent | |||||
Approximate | Per Square | ||||
GLA Leased | % of Total | Foot Per | Lease | Term | |
Lessee | (Sq. Ft.) | GLA | Annum ($) | Beginning | To |
Stop and Shop | 65,486 | 78 | 20.00 | 11/04 | 11/24 |
For federal income tax purposes, the depreciable basis in this property will be approximately $17,580,000. When we calculate depreciation expense for tax purposes, we will use the straight-line method. We depreciate buildings and improvements based upon estimated useful lives of 40 and 20 years, respectively.
Cottage Plaza was newly constructed during 2004 and 2005. As of February 1, 2005, this property was 100% leased, with a total 83,903 square feet leased to five tenants and three ground lease tenants. The following table sets forth certain information with respect to those leases:
Approximate GLA Leased | Lease | Current Annual | Base Rent Per Square Foot | |
Lessee | (Sq. Ft.) | Ends | Rent ($) | Per Annum ($) |
Sally Beauty Supplies | 1,600 | 12/08 | 30,960 | 19.35 |
T-Mobile | 1,857 | 12/09 | 38,997 | 21.00 |
Wendy's Old Fashioned Hamburgers (Ground Lease) * | 3,500 | 12/14 | 55,000 | N/A |
Pepperoni's | 1,920 | 12/14 | 34,200 | 17.81 |
Hollywood Video | 6,500 | 12/15 | 143,000 | 22.00 |
Stop & Shop Gas Station (Ground Lease) | 40 | 11/24 | 25,000 | N/A |
Stop & Shop | 65,486 | 11/24 | 1,309,720 | 20.00 |
Dunkin Donuts (Ground Lease) * | 3,000 | 01/25 | 55,000 | N/A |
* Lease term has not yet commenced but commences upon the tenant's occupancy of their building.
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.
Magnolia Square, Houma, Louisiana
On February 1, 2005, we purchased a newly constructed shopping center and which is known as Magnolia Square, containing 116,079 gross leasable square feet. The center is located at Martin Luther King Boulevard and Corporate Drive in Houma, Louisiana.
We purchased this property from an unaffiliated third party. Our total acquisition cost was approximately $18,264,000. These amounts 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 $157 per square foot of leasable space.
We purchased this property with our own funds. However, we expect to place financing on the property at a later date.
We do not intend to make significant repairs and improvements to this property over the next few years. However, if we were to make any repairs or improvements, the tenants would be obligated to pay a substantial portion of any monies spent pursuant to the provisions of their respective leases.
Three tenants, Circuit City, Ross Stores and PETsMART, lease more than 10% of the total gross leasable area of the property. The leases with these tenants require the tenants to pay base annual rent on a monthly basis as follows:
Base Rent | |||||
Approximate | Per Square | ||||
GLA Leased | % of Total | Foot Per | Lease | Term | |
Lessee | (Sq. Ft.) | GLA | Annum ($) | Beginning | To |
Circuit City | 20,246 | 17 | 13.85 | 10/04 | 01/20 |
Ross Stores | 30,025 | 26 | 9.30 | 09/04 | 01/15 |
PETsMART | 20,030 | 17 | 12.50 | 10/04 | 03/15 |
For federal income tax purposes, the depreciable basis in this property will be approximately $13,698,000. When we calculate depreciation expense for tax purposes, we will use the straight-line method. We depreciate buildings and improvements based upon estimated useful lives of 40 and 20 years, respectively.
Magnolia Square was newly constructed during 2004. As of February 1, 2005, the property was 97% leased with a total 112,879 square feet leased to 13 tenants. The following table sets forth certain information with respect to those leases:
Approximate GLA Leased | Lease | Current Annual | Base Rent Per Square Foot | |
Lessee | (Sq. Ft.) | Ends | Rent ($) | Per Annum ($) |
Dollar Tree | 10,030 | 09/09 | 72,718 | 7.25 |
Dress Barn | 7,548 | 12/09 | 107,559 | 14.25 |
West Marine | 6,000 | 12/09 | 136,440 | 22.74 |
Oreck Floor Care Center | 1,600 | 12/09 | 24,800 | 15.50 |
Budget Cuts * | 1,600 | 12/09 | 24,800 | 15.50 |
Saigon Restaurant * | 1,600 | 12/09 | 24,800 | 15.50 |
Sally Beauty Supplies | 1,600 | 02/10 | 26,000 | 16.25 |
Chuck E. Cheese | 7,000 | 08/14 | 126,000 | 18.00 |
Ross Dress for Less | 30,025 | 01/15 | 279,221 | 9.30 |
PETsMART | 20,030 | 03/15 | 250,375 | 12.50 |
Circuit City | 20,246 | 01/20 | 280,407 | 13.85 |
Starbucks * | 1,600 | TBD | 41,360 | 25.85 |
Rue 21 * | 4,000 | TBD | 60,000 | 15.00 |
* Lease term information is based on the date the tenant begins occupancy and 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, ProForma Financial Information and Exhibits
- Financial Statements
To be subsequently filed for Magnolia Square under Rule 3-14 of the Securities and Exchange Commission Regulation S-X. No financial statement will be filed for Cottage Plaza as the acquisition of this property does not require a 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: | February 1, 2005 |