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SUPPLEMENT NO. 3
DATED SEPTEMBER 23, 1996
TO THE PROSPECTUS DATED JULY 24, 1996
OF INLAND REAL ESTATE CORPORATION
This Supplement No. 3 is provided for the purpose of supplementing the
Prospectus dated July 24, 1996 of Inland Real Estate Corporation (the
"Company") as previously supplemented and must be read in conjunction
therewith. Unless otherwise defined, capitalized terms used herein shall have
the same meaning as in the Prospectus.
REAL PROPERTY INVESTMENTS
SIX CORNERS PLAZA, CHICAGO, ILLINOIS
The Company anticipates purchasing a Neighborhood Retail Center
located at 3920 North Cicero Avenue in Chicago, Illinois known as Six Corners
Plaza ("Six Corners"). Under the proposed terms of the acquisition, the
Company would purchase Six Corners from MBL Life Assurance Corporation, an
unaffiliated third party, for approximately $6.0 million. The Company
anticipates funding the purchase using: (i) the proceeds of a five-year loan in
the amount of $3,000,000 from an unaffiliated lender; and (ii) cash and cash
equivalents. The loan requires interest only payments during the term of the
loan at an annual rate of 7.85%. The Company must also pay an origination fee
equal to 1% to the lender at closing. A closing date for the acquisition has
not been scheduled pending completion of due diligence on the property, which
the Advisor is undertaking on behalf of the Company. No acquisition fees will
be payable in connection with the acquisition of Six Corners. There can be no
assurance that the Company will complete the acquisition of Six Corners.
Six Corners was built in 1966 and consists of a two-story building
comprising a multi-tenant neighborhood retail facility aggregating 80,650
rentable square feet. The center is anchored by Bally's Chicago Health &
Tennis Club, which leases 45,803 square feet, and Illinois Masonic, which
leases 13,988 square feet.
PLAN OF DISTRIBUTION
The Company commenced the Offering on July 24, 1996 and as of
September 19, 1996 the Company had accepted subscriptions for 691,833.4 shares
($6,294,261 net of Selling Commissions, the Marketing Contributions 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 September 19, 1996, the Affiliate of the Advisor was entitled to receive
commissions, the Marketing Contribution and the Due Diligence Expense Allowance
Fee totalling $597,010. 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 $72,096 for the six months ended
June 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 June 30, 1996, the Company
had incurred $125,532 of fees, 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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Inland Real Estate Corporation
Sticker Supplement
Supplement No. 3 to the Company's Prospectus discloses information
regarding a pending acquisition of property. Unless otherwise defined,
capitalized terms used herein shall have the same meaning as in the Prospectus.
The Company has entered into an agreement to purchase an 80,650 square
foot neighborhood retail facility known as Six Corners Plaza located at 3920
North Cicero Avenue, Chicago, Illinois for approximately $6.0 million. The
purchase of the center is conditioned on the Company completing its due
diligence.
The Company commenced the Offering on July 24, 1996 and as of
September 19, 1996, the Company had accepted subscriptions for 691,833.4 shares
($6,294,261 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 September 19, 1996, the Affiliate of the Advisor was entitled to receive
commissions, the Marketing Contribution and the Due Diligence Expense Allowance
Fee totalling $597,010. 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 $72,096 for the six months ended
June 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 June 30, 1996, the Company
had incurred $125,532 of fees, all of which remained unpaid on such date. As
of December 31, 1995, the Company had not incurred or paid any such fees.
