Filed pursuant to 424(b)(3)
Registration #333-118860
SUPPLEMENT NO. 9
DATED FEBRUARY 28, 2005
TO THE PROSPECTUS DATED DECEMBER 21, 2004
OF INLAND WESTERN RETAIL REAL ESTATE TRUST, INC.
We are providing this Supplement No. 9 to you in order to supplement our prospectus. This supplement updates information in the "Real Property Investments" and "Plan of Distribution" sections of our prospectus. ThisSupplement No. 9 supplements, modifies or supersedes certain information contained in our prospectus, Supplement No. 8 dated February 18, 2005, Supplement No. 7 dated February 16, 2005, Supplement No. 6 dated February 8, 2005, Supplement No. 5 dated February 1, 2005, Supplement No. 4 dated January 25, 2005, Supplement No. 3 dated January 11, 2005, Supplement No 2 dated January 4, 2005, Supplement No. 1 dated December 29, 2004, and prospectus dated December 21, 2004, and must be read in conjunction with our prospectus.
Real Property Investments
The discussion under this section, which starts on page 110 of our prospectus, is modified and supplemented by the following information regarding properties we have acquired or intend to acquire.
Trenton Crossing, McAllen, Texas
On February 18, 2005, we purchased 215,220 of gross leasable square feet of a 249,635 of square foot shopping center known as Trenton Crossing. The center is located at 10th Street and Trenton Road in McAllen, Texas.
We purchased this portion of the property from an unaffiliated third party. Our acquisition cost for the portion we purchased was approximately $29,212,000. 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 for the portion we purchased was approximately $136 per square foot of leasable space.
We purchased this portion of the property with our own funds. However, we expect to place financing on the property at a later date.
We do not intend to make significant repairs and improvements to the portion we purchased over the next few years. However, if we were to make any repairs or improvements, the tenants would be obligated to pay a substantial portion of any monies spent pursuant to the provisions of their respective leases.
Four tenants, Hobby Lobby, Ross Dress For Less, Marshalls and Bealls, each lease more than 10% of the total gross leasable area of the portion of the property we purchased. The leases with these tenants require the tenants to pay base annual rent on a monthly basis as follows:
Base Rent | |||||
Approximate | Per Square | ||||
GLA Leased | % of Total | Foot Per | Lease | Term | |
Lessee | (Sq. Ft.) | GLA | Annum ($) | Beginning | To |
Hobby Lobby | 55,000 | 26 | 6.50 | 09/03 | 09/18 |
Ross Dress For Less | 30,187 | 14 | 9.00 | 01/04 | 01/14 |
Marshalls | 30,000 | 14 | 8.75 | 11/03 | 11/13 |
Bealls | 25,000 | 12 | 8.50 | 11/03 | 01/19 |
For federal income tax purposes, the depreciable basis in the portion of the property we purchased will be approximately $21,909,000. When we calculate depreciation expense for tax purposes, we will use the straight-line method. We depreciate buildings and improvements based upon estimated useful lives of 40 and 20 years, respectively.
Trenton Crossing was built in 2003. As of February 1, 2005, the portion of the property we purchased was 99% occupied, with a total 214,060 square feet leased to 19 tenants. The following table sets forth certain information with respect to those leases:
Approximate GLA Leased | Current Annual | Base Rent Per Square Foot | ||
Lessee | (Sq. Ft.) | Lease Ends | Rent ($) | Per Annum ($) |
Rack Room Shoes | 6,000 | 11/08 | 90,000 | 15.00 |
Cingular Wireless | 2,500 | 12/08 | 56,256 | 22.50 |
Dollar Tree | 14,960 | 01/09 | 134,640 | 9.00 |
Check N Go | 1,500 | 04/09 | 31,500 | 21.00 |
T Nails | 1,192 | 04/09 | 23,844 | 20.00 |
H&R Block | 1,538 | 04/09 | 30,756 | 20.00 |
Game Stop | 1,500 | 04/09 | 31,500 | 21.00 |
Subway | 1,500 | 05/09 | 30,000 | 20.00 |
Dress Barn | 8,000 | 06/09 | 120,000 | 15.00 |
Mattress Firm | 4,800 | 06/09 | 100,800 | 21.00 |
Illusions | 2,991 | 08/09 | 53,844 | 18.00 |
Wells Fargo Bank | 2,500 | 10/09 | 50,004 | 20.00 |
De Pan Bakery | 4,042 | 10/09 | 80,844 | 20.00 |
GNC | 1,500 | 11/09 | 27,000 | 18.00 |
Marshalls | 30,000 | 11/13 | 262,500 | 8.75 |
Ross Dress For Less | 30,187 | 01/14 | 271,680 | 9.00 |
PETsMART | 19,350 | 01/15 | 232,200 | 12.00 |
Hobby Lobby | 55,000 | 09/18 | 357,504 | 6.50 |
Bealls | 25,000 | 01/19 | 212,496 | 8.50 |
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.
Potential Property Acquisitions
We are currently considering acquiring the properties listed below. Our decision to acquire these properties will generally depend upon:
- no material adverse change occurring relating to the properties, the tenants or in the local economic conditions;
- our receipts of sufficient net proceeds from this offering and financing proceeds to make these acquisition; and
- our receipt of satisfactory due diligence information including appraisals, environmental reports and lease information.
Other properties may be identified in the future that we may acquire before or instead of these properties. We cannot guarantee that we will complete these acquisitions.
In evaluating these properties as potential acquisitions and determining the appropriate amount of consideration to be paid for each property, we have considered a variety of factors including, overall valuation of net rental income, location, demographics, quality of tenant, length of lease, price per square foot, occupancy and the fact that overall rental rate at the shopping center is comparable to market rates. We believe that these properties are well located, have acceptable roadway access, are well maintained and have been professionally managed. These properties will be subject to competition from similar shopping centers within their market area, and their economic performance could be affected by changes in local economic conditions. We did not consider any other factors materially relevant to our decision to acquire these properties.
CarMax, San Antonio, Texas
We anticipate purchasing an existing freestanding retail center known as CarMax, containing 60,772 of gross leasable square feet. The center is located at 3611 Fountain Head Drive in San Antonio, Texas.
We anticipate purchasing this property from an unaffiliated third party. Our total acquisition cost is expected to be approximately $14,600,000. 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 is expected to be approximately $240 per square foot of leasable space.
We intend to purchase this property with our own funds. However, we expect to place financing on the property at a later date.
We do not intend to make significant repairs and improvements to this property over the next few years. However, if we were to make any repairs or improvements, the tenant would be obligated to pay a substantial portion of any monies spent pursuant to the provisions of their lease.
One tenant, CarMax, will lease 100% of the total gross leasable area of the property. The lease with this tenant requires the tenant to pay base annual rent on a monthly basis as follows:
Base Rent | |||||
Approximate | Per Square | Estimated | |||
GLA Leased | % of Total | Foot Per | Lease | Term | |
Lessee | (Sq. Ft.) | GLA | Annum ($) | Beginning | To |
CarMax | 60,772 | 100 | 17.50 | 11/98 | 10/20 |
For federal income tax purposes, the depreciable basis in this property will be approximately $10,950,000. When we calculate depreciation expense for tax purposes, we will use the straight-line method. We depreciate buildings and improvements based upon estimated useful lives of 40 and 20 years, respectively.
Plan of Distribution
The following new subsection is inserted at the end of this section on page 360 of our prospectus.
Update
The following table updates shares sold in our offerings as of February 24, 2005:
Gross | Commission and fees | Net | ||
Shares | proceeds ($) | ($) (1) | proceeds ($) | |
From our advisor | 20,000 | 200,000 | - | 200,000 |
Our offering dated September 15, 2003: | 249,913,124 | 2,499,046,750 | 261,900,551 | 2,237,146,199 |
Our second offering dated December 21, 2004 | 4,356,384 | 43,563,841 | 4,455,516 | 39,108,325 |
Shares sold pursuant to our distribution reinvestment program | 4,404,876 | 41,846,320 | - | 41,846,320 |
Shares repurchased pursuant to our share repurchase program | (152,203) | (1,407,877) | - | (1,407,877) |
258,542,181 | 2,583,249,034 | 266,356,067 | 2,316,892,967 |
(1) Inland Securities Corporation serves as dealer manager of this offering and is entitled to receive selling commissions and certain other fees, as discussed further in our prospectus.