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Inland Real Estate Corporation
Sticker Supplement
Supplement No. 7 to the Company's Prospectus discloses information
regarding two pending acquisitions of property. Unless otherwise defined,
capitalized terms used herein shall have the same meaning as in the Prospectus.
The Company has entered into agreements to purchase a 21,222 square
foot neighborhood retail facility known as Grand & Hunt Club Outlot Center
located at Grand Avenue and Hunt Club Road, Gurnee, Illinois for approximately
$3.6 million and a 9,650 square foot neighborhood retail facility known as The
Quarry Outlot located at La Grange Road and Joliet Road, Hodgkins, Illinois for
approximately $1.8 million. The purchases of these centers are conditioned on
the Company completing its due diligence.
The Company commenced the Offering on July 24, 1996 and as of December
17, 1996, the Company had accepted subscriptions for 2,786,240 shares
($25,076,978 net of Selling Commissions, the Marketing Contribution and the Due
Diligence Expense Allowance Fee) which are being offered on a best-efforts
basis. An Affiliate of the Advisor serves as dealer manager of the Offering
and is entitled to receive selling commissions and certain other amounts. As
of December 17, 1996, the Affiliate of the Advisor was entitled to receive
commissions, the Marketing Contribution and the Due Diligence Expense Allowance
Fee totalling $2,572,238. An Affiliate of the Advisor is also entitled to
receive Property Management Fees for management and leasing services.
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SUPPLEMENT NO. 7
DATED DECEMBER 18, 1996
TO THE PROSPECTUS DATED JULY 24, 1996
OF INLAND REAL ESTATE CORPORATION
This Supplement No.7 is provided for the purpose of supplementing the
Prospectus dated July 24, 1996 of Inland Real Estate Corporation (the
"Company") as previously supplemented by Supplement No. 6 dated November 27,
1996 and Supplement No. 5 dated November 1, 1996, and must be read in
conjunction therewith. Unless otherwise defined, capitalized terms used herein
shall have the same meaning as in the Prospectus, as supplemented.
REAL PROPERTY INVESTMENTS
GRAND & HUNT CLUB OUTLOT CENTER, GURNEE, ILLINOIS
The Company has entered into a non-binding letter of intent to
purchase a Neighborhood Retail Center located at Grand Avenue and Hunt Club
Road in Gurnee, Illinois known as Grand & Hunt Club Outlot Center ("Hunt
Club"). Under the proposed terms of the acquisition, the Company would
purchase Hunt Club from Butler Real Estate, Inc., an unaffiliated third party,
for approximately $3.6 million. The Company anticipates funding the purchase
using cash and cash equivalents. Execution of a definitive agreement is
subject to completion of due diligence, which the Advisor is undertaking on
behalf of the Company, receipt of the final appraisal indicating the value of
the property is not less than $3.6 million and the receipt of a final
environmental report indicating no environmental concerns on the property. No
acquisition fees will be payable in connection with the acquisition of Hunt
Club. There can be no assurance that the Company will complete the acquisition
of Hunt Club.
Hunt Club was built in 1996 and consists of a one-story building
comprising a two-tenant neighborhood retail facility aggregating 21,222
rentable square feet. The center is occupied by Super Crown Books, a national
discount bookstore, which leases 16,722 square feet, and Helzberg's Diamond
Shops d/b/a Jewelry 3, a jeweler, which leases 4,500 square feet.
THE QUARRY OUTLOT, HODGKINS, ILLINOIS
The Company has entered into a non-binding letter of intent to
purchase a Neighborhood Retail Center located at La Grange Road and Joliet Road
in Hodgkins, Illinois known as The Quarry Outlot ("The Quarry"). Under the
proposed terms of the acquisition, the Company would purchase The Quarry from
Butler Real Estate, Inc., an unaffiliated third party, for approximately $1.8
million. The Company anticipates funding the purchase using cash and cash
equivalents. Execution of a definitive agreement is subject to completion of
due diligence, which the Advisor is undertaking on behalf of the Company,
receipt of the final appraisal indicating the value of the property is not less
than $1.8 million and the receipt of a final environmental report indicating no
environmental concerns on the property. No acquisition fees will be payable in
connection with the acquisition of The Quarry. There can be no assurance that
the Company will complete the acquisition of The Quarry.
The Quarry was built in 1996 and consists of a one-story building
comprising a three-tenant neighborhood retail facility aggregating 9,650
rentable square feet. The center is occupied by Helzberg's Diamond Shops d/b/a
Jewelry 3, a jeweler, which leases 4,700 square feet, Dunkin Donuts/ Baskin
Robbins, a national donut and ice cream retailer, which leases 1,800 square
feet and Casual Male Big and Tall, a clothing retailer, which leases 3,150
square feet.
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PLAN OF DISTRIBUTION
The Company commenced the Offering on July 24, 1996 and as of December
17, 1996 the Company had accepted subscriptions for 2,786,240 shares
($25,076,978 net of Selling Commissions, the Marketing Contributions and the
Due Diligence Expense Allowance Fee) which are being offered on a best-efforts
basis.
Inland Securities Corporation, an Affiliate of the Advisor, serves as
dealer manager of the Offering and is entitled to receive selling commissions
and certain other amounts. As of December 17, 1996, Inland Securities
Corporation was entitled to receive commissions, the Marketing Contribution and
the Due Diligence Expense Allowance Fee totalling $2,572,238 in connection with
the Offering. An Affiliate of the Advisor is also entitled to receive Property
Management Fees for management and leasing services. The Company incurred and
paid Property Management Fees of $139,597 for the nine months ended September
30, 1996 and $46,791 for the year ended December 31, 1995. The Advisor may
also receive an annual Advisor Asset Management Fee of not more than 1% of the
Average Invested Assets, paid quarterly. As of September 30, 1996, the Company
had incurred Advisor Asset Management Fees of $242,341, all of which remained
unpaid on such date. As of December 31, 1995, the Company had not incurred or
paid any such fees.
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