Filed pursuant to 424(b)(3)
Registration #333-118860
SUPPLEMENT NO. 21
DATED JUNE 2, 2005
TO THE PROSPECTUS DATED DECEMBER 21, 2004
OF INLAND WESTERN RETAIL REAL ESTATE TRUST, INC.
We are providing this Supplement No. 21 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. This Supplement No. 21 supplements, modifies or supersedes certain information contained in our prospectus, Supplement No. 20 dated May 25, 2005, Supplement No. 19 dated May 18, 2005, Supplement No. 18 dated May 6, 2005, Supplement No. 17 dated April 22, 2005, Supplement No. 16 dated April 18, 2005, Supplement No. 15 dated April 5, 2005, Supplement No. 14 dated March 28, 2005 and Supplement No. 13 dated March 18, 2005, (Supplement No. 13 superseded certain information contained in our prospectus and prior supplements dated between December 29, 2004 and March 18, 2005), and must be read in conjunction with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.
The following table provides information regarding the properties we have acquired since May 25, 2005, the date of our last supplement, Supplement No. 20. We have purchased these properties from unaffiliated third parties. We purchased these properties with our own funds, unless noted otherwise. However, we expect to place financing on these properties that do not currently have financing at a later date.
Year | Date | Approximate Acquisition Costs Including Expenses | Gross Leasable Area | Physical Occupancy as of 06/01/05 | No. of | ||
Property | Built | Acquired | ($) * | (Sq. Ft.) | (%) | Tenants | Major Tenants ** |
Eckerd Drug Store | 1999/ 2000 | 05/25/05 | 2,847,000 | 11,360 | 100 | 1 | Eckerd Drug Store |
CVS Drug Store | 1999 | 05/26/05 | 2,206,000 | 11,184 | 100 | 1 | CVS Drug Store |
Wickes Furniture Store | 2005 | 05/27/05 | 8,488,000 | 41,331 | 100 | 1 | Wickes Furniture Store |
* | Our acquisition costs may increase by additional costs, which have not yet been finally determined. We expect any additional costs to be insignificant. |
** | Major tenants include tenants leasing more than 10% of the gross leasable area of the individual property. |
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 underlying properties, the tenants or in the local economic conditions;
- our receipts of sufficient net proceeds from our offering and financing proceeds to make this 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 underlying properties. We cannot guarantee that we will complete this acquisition.
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.
Year | Approximate Acquisition Costs Including | Gross Leasable Area | Physical Occupancy as of 06/01/05 | No. of | ||
Property | Built | Expenses ($) * | (Sq. Ft.) | (%) | Tenants | Major Tenants** |
Shoppes at Warner Robbins | 2004 | 13,374,000 | 70,740 | 86 | 12 | Publix |
Southwest Crossing | 1999 | 24,900,000 | 113,528 | 99 | 15 | Comp USA |
West Town Market | 2004 | 10,250,000 | 68,544 | 96 | 11 | Harris Teeter |
* | Our acquisition costs may increase by additional costs, which have not yet been finally determined. We expect any additional costs to be insignificant. |
** | Major tenants include tenants leasing more than 10% of the gross leasable area of the individual property. |
Acquisition Portfolio
We anticipate purchasing seven retail shopping centers and two single-user tenant properties containing a total of approximately 1,786,970 million gross leasable square feet for approximately $316 million. The properties are located in the states of Connecticut, New Jersey, New York, and Pennsylvania.
We intend purchase these properties with our own funds. However, we expect to place financing in the properties at a later date.
We do not intend to make significant repairs and improvements to these properties in this portfolio over the next few years. However, if we were to make any repairs or improvements, the tenants would be obligated to pay a substantial portion of any monies spent pursuant to the provisions of their respective leases.
One tenant, Home Depot, leases more than 10% of the total gross leasable area of the properties in this portfolio, collectively. However, the following tenants lease more than 10% of the total gross leasable area of the respective properties included in this portfolio: Bed, Bath & Beyond, Circuit City, Crown Theater, Giant Eagle, Home Depot, King Kullen Supermarket, Linens 'N Things, Michaels, Office Max, Old Navy, Price Chopper, Staples, Stop & Shop, and Target.
The properties in this portfolio were constructed during different years ranging between 1992 through 2003. As of June 1, 2005, the properties' occupancy percentages ranged from 58% to 100%. One property's occupancy percentage does not include approximately 80,405 gross leasable square feet which has been leased to tenants whose leases have not yet commenced.
In general, each tenant will pay its proportionate share of real estate taxes, insurance and common area maintenance costs, although the leases with some tenants may provide that the tenant's liability for such expenses is limited in some way, usually so that their liability for such expenses does not exceed a specified amount.
Plan of Distribution
The following new subsection is inserted at the end of this section on page 360 of our prospectus.
Update
The following table updates shares sold in our offerings as of May 31, 2005:
Gross | Commission and fees | Net | ||
Shares | proceeds ($) | ($) (1) | proceeds ($) | |
From our advisor | 20,000 | 200,000 | - | 200,000 |
Our offering dated September 15, 2003 | 249,980,000 | 2,499,722,014 | 262,079,815 | 2,237,642,199 |
Our second offering dated December 21, 2004 | 74,849,945 | 748,499,450 | 78,570,759 | 669,928,691 |
Shares sold pursuant to our distribution reinvestment program | 6,779,375 | 64,404,062 | - | 64,404,062 |
Shares repurchased pursuant to our share repurchase program | (267,734) | (2,476,538) | - | (2,476,538) |
331,361,586 | 3,310,348,988 | 340,650,574 | 2,969,698,414 |
- 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.