As filed with the Securities and Exchange Commission on December 14, 1998
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: November 30, 1998
(Date of earliest event reported)
Inland Real Estate Corporation
(Exact name of registrant as specified in the charter)
Maryland 0-28382 36-3953261
(State or other jurisdiction (Commission File No.) (IRS Employer
of incorporation) 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)
-1-
Item 2. Acquisition or Disposition of Assets
Since our last Form 8-K filing on October 22, 1998, we have acquired eight
additional properties and consumated a joint venture transaction. As of the
acquisition of Marketplace at Six Corners on November 30, 1998, the aggregate
purchase prices of these properties exceeded 10 percent of our total assets as
of December 31, 1997, and accordingly, we are filing this Form 8-K.
Inland Joliet Commons L.L.C., Joliet, Illinois
On October 30, 1998, we consummated a joint venture transaction with B.I.J.
Limited Partnership, an Illinois limited partnership ("BIJ"). To effect the
transaction, we formed a limited liability company known as "Inland Joliet
Commons L.L.C." (the "LLC") to own and operate Joliet Commons Shopping Center
("Joliet Commons Shopping Center") located at U.S. 30 and Willow Road in
Joliet, Illinois. Pursuant to the LLC Operating Agreement (the "Agreement"),
we contributed approximately $52,000 in cash to obtain a one percent (1%)
equity interest in the LLC. BIJ contributed Joliet Commons Shopping Center to
the LLC, which was valued at approximately $5,100,000, ($19,800,000 less
indebtedness of $14,700,000), to obtain a ninety-nine percent (99%) equity
interest in the LLC. In accordance with the Agreement, BIJ may transfer its
equity interest in the LLC to certain persons as provided for in the Agreement.
Each holder of an equity interest in the LLC has the option to convert its
equity interest into shares of our common stock (an "Exchange"). No holder of
an equity interest in the LLC, however, may Exchange its equity interest for a
period of one year from the effective date of the Agreement.
Additionally, the Agreement provides that if our stock is not publicly traded
on a national securities exchange or designated on the NASDAQ National Market
System within a period of two years from the effective date of the Agreement,
then any holder of an equity interest in the LLC may require us to purchase all
or any portion of its equity interest at a price calculated pursuant to the
formula set forth in the Agreement. Our obligation to purchase a holder's
equity interest in the LLC terminates if and when our stock becomes publicly
traded on a national securities exchange or is designated on the NASDAQ
National Market System. In connection with this transaction, we also entered
into a Registration Rights Agreement which grants to a holder of an equity
interest in the LLC the right, subject to certain restrictions, to request that
we register all or any portion of the shares of our stock which the holder
receives as a result of an Exchange.
-2-
Joliet Commons Shopping Center is a Community Center located at U.S. 30 and
Willow Road in Joliet, Illinois. It was built in 1995 and is a one-story,
multi-tenant retail facility. Joliet Commons Shopping Center contains 159,184
leasable square feet. As of November 1, 1998, Joliet Commons Shopping Center
was 97% leased (100% leased if the master lease, which lasts for one year, is
considered). When we evaluated Joliet Commons Shopping Center as a potential
acquisition, we considered a variety of factors including location,
demographics, tenant mix, price per square foot, existing rental rates compared
to market rates, and occupancy. We believe that the center is located within a
vibrant economic area. We did not consider any other factors when we decided
to acquire the property.
We do not anticipate making any significant repairs and improvements to Joliet
Commons Shopping Center over the next few years. However, if we were to make
any repairs or improvements, a substantial portion of any monies spent on
repairs and improvements would be paid by the tenants, pursuant to the terms of
our leases with these tenants.
The table below sets forth the occupancy rate at Joliet Commons Shopping Center
expressed as a percentage of total gross leasable area and the average annual
base rent per square foot:
Occupancy Rate Effective
as of Annual Rental
December 31, Rate Per Leasable
Year Ending of Each Year Square Ft
December 31, (%) ($)
------------ ------------ -------------
1997 100 11.74
1996 81 9.54
1995 59 6.72
Tenants leasing more than 10% of the total gross leasable area of the property
are Cinemark, a theater, Petsmart, a pet store, Barnes and Noble, a book store,
Old Navy, a clothes store and M.C. Sports, a sporting goods store. These
leases require the tenants to pay base annual rent on a monthly basis as
follows:
Base Rent
Per Square
Approximate Foot Per
GLA % of Total Year Lease Term
Lessee Leased GLA ($) Beginning To
----------- ----------- ----------- ------------ ------------ ---------
Cinemark 35,152 22 12.70 Currently 12/31/02
13.20 01/01/03 12/31/07
13.70 01/01/08 12/31/16
Petsmart 25,425 16 8.72 Currently 01/31/05
9.22 02/01/05 01/31/10
Option 1 9.72 02/01/10 01/31/15
Option 2 10.22 02/01/15 01/31/20
Option 3 10.72 02/01/20 01/31/25
Option 4 11.22 02/01/25 01/31/30
Option 5 11.72 02/01/30 01/31/35
-3-
Base Rent
Per Square
Approximate Foot Per
GLA % of Total Year Lease Term
Lessee Leased GLA ($) Beginning To
----------- ----------- ----------- ------------ ------------ ---------
Barnes and Noble 20,000 13 13.45 Currently 01/31/01
14.20 02/01/01 01/31/06
Option 1 14.95 02/01/06 01/31/11
Option 2 15.70 02/01/11 01/31/16
Old Navy 17,000 11 11.00 Currently 07/31/00
13.00 08/01/00 07/31/05
Option 1 14.00 08/01/05 07/31/10
Option 2 15.00 08/01/10 07/31/15
M.C. Sports 15,000 9 8.50 Currently 01/31/99
9.25 02/01/99 01/31/01
10.00 02/01/01 01/31/06
Option 1 11.00 02/01/06 01/31/11
Option 2 12.00 02/01/11 01/31/16
For federal income tax purposes, the depreciable basis in Joliet Commons
Shopping Center will be approximately $15,400,000. When we calculate
depreciation expense, for tax purposes, we will use the straight-line method.
We will depreciate buildings and improvements based upon estimated useful lives
of 40 years.
Real estate taxes payable in 1998 for the tax year ended 1997 were $339,330.
The real estate taxes payable were calculated by multiplying the assessed value
of the property by an equalizer of 1.0 and a tax rate of 10.2385%.
On November 1, 1998, a total of 154,544 square feet was leased to ten tenants
at Joliet Commons Shopping Center. The following tables set forth information
with respect to the amount of and expiration of the leases at this Community
Center:
Approximate Current Rent per
GLA Lease Renewal Annual Rent Square Foot
Lessee Leased Ends Option ($) ($)
------ ---------- ----- ------ ----------- -----------
Cinemark 35,152 12/16 - 446,430 12.70
Petsmart 25,425 01/10 5/5 yr. 221,706 8.72
Barnes & Noble 20,000 01/06 2/5 yr. 269,000 13.45
Old Navy 17,000 07/05 2/5 yr. 187,000 11.00
Carpet Outlet 8,000 01/02 2/5 yr. 80,000 10.00
Cosmetic Center 6,607 01/06 2/5 yr. 99,105 15.00
M.C. Sports 15,000 01/06 2/5 yr. 127,500 8.50
LA-Z Recliner Shop 12,720 01/07 2/5 yr. 127,200 10.00
Hometown Buffet 10,000 12/11 2/5 yr. 120,000 12.00
Jewelry 3 4,640 11/05 3/5 yr. 92,800 20.00
Vacant 4,640
-4-
<TABLE>
<CAPTION>
Average Percent of Percent of
Base Rent Total Annual Base
Annual Base Total Per Square Building GLA Rent
Approx. GLA Rent of Annual Foot Under Represented Represented
Year Number of of Expiring Expiring Base Expiring by Expiring By Expiring
Ending Leases Leases Leases Rent (1) Leases Leases Leases
December 31, Expiring (Sq. Ft.) ($) ($) ($) (%) (%)
- ----------- --------- ----------- ----------- ----------- ---------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
1998 - - - 1,774,636 - - -
1999 - - - 1,785,886 - - -
2000 - - - 1,785,886 - - -
2001 - - - 1,852,082 - - -
2002 1 8,000 84,000 1,880,908 10.50 5.18 4.47
2003 - - - 1,819,628 - - -
2004 - - - 1,819,628 - - -
2005 2 21,640 327,720 1,832,340 15.14 14.00 17.89
2006 3 41,607 536,276 1,504,620 12.89 26.92 35.64
2007 1 12,720 139,920 985,920 11.00 8.23 14.19
(1) We made no assumptions regarding the re-leasing of expired leases. It is the opinion
of the Company's management that the space will be re-leased at market rates at the time of re-
leasing.
</TABLE>
We received an appraisal prepared by an independent appraiser who is a member
in good standing of the American Institute of Real Estate Appraisers. The
appraisal reported a fair market value for the Joliet Commons Shopping Center
property as of February 25, 1998, of $20,000,000. You should note that
appraisals are estimates of value and therefore you should not rely upon them
as a measure of true worth or realizable value.
-5-
Springboro Plaza, Springboro, Ohio
On November 12, 1998, we purchased the entire fee simple interest in a
Community Center located at Route 73 and Pioneer Boulevard in Springboro, Ohio
known as "Springboro Plaza." We purchased Springboro Plaza from Midwest Strip
Center Partners, an unaffiliated third party, for approximately $9,295,000. We
paid for Springboro Plaza using cash and cash equivalents. The purchase price
was approximately $60.34 per square foot, which we concluded was fair and
reasonable based on, among other things, an appraisal that we received and
presented to our board of directors.
Springboro Plaza, built in 1992, is a one-story, multi-tenant retail facility.
Springboro Plaza contains 154,034 leasable square feet. As of November 19,
1998, Springboro Plaza was 100% leased. When we evaluated Springboro Plaza as
a potential acquisition, we considered a variety of factors including location,
demographics, tenant mix, price per square foot, existing rental rates compared
to market rates, and occupancy. We believe that the center is located within a
vibrant economic area. The center is newly constructed and has a grocery
store, Kroger as its anchor. We did not consider any other factors when we
decided to acquire the property.
We do not anticipate making any significant repairs and improvements to
Springboro Plaza over the next few years. However, if we were to make any
repairs or improvements, a substantial portion of any monies spent on repairs
and improvements would be paid by the center's tenants, pursuant to the terms
of our leases with these tenants.
The table below sets forth the occupancy rate at Springboro Plaza expressed as
a percentage of total gross leasable area and the average annual base rent per
square foot:
Occupancy Rate Effective
as of Annual Rental
December 31, Rate Per Leasable
Year Ending of Each Year Square Ft
December 31, (%) ($)
------------ ------------ -------------
1997 100 5.80
1996 100 6.04
1995 100 5.94
1994 100 5.96
1993 100 5.96
-6-
Tenants leasing more than 10% of the total gross leasable area of the property
are Kroger, a grocery store and Kmart, a discount store. These leases require
the tenants to pay base annual rent on a monthly basis as follows:
Base Rent
Per Square
Approximate Foot Per
GLA % of Total Annum Lease Term
Lessee Leased GLA ($) Beginning To
----------- ----------- ----------- ------------ ------------ ---------
Kroger 56,634 37 6.56 Currently 04/30/17
Option 1 6.56 05/01/17 04/30/22
Option 2 6.56 05/01/22 04/30/27
Option 3 6.56 05/01/27 04/30/32
Option 4 6.56 05/01/32 04/30/37
Option 5 6.56 05/01/37 04/30/42
Kmart 91,266 59 5.25 Currently 06/30/17
Option 1 5.25 07/01/17 06/30/22
Option 2 5.25 07/01/22 06/30/27
Option 3 5.25 07/01/27 06/30/32
Option 4 5.25 07/01/32 06/30/37
Option 5 5.25 07/01/37 06/30/42
For federal income tax purposes, our depreciable basis in Springboro Plaza will
be approximately $7,000,000. 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 years.
Real estate taxes paid in 1998 for the tax year ended 1997 were $114,890. The
real estate taxes payable were calculated by multiplying the assessed value by
a tax rate of 3.3865%.
On November 19, 1998, a total of 154,034 square feet was leased to four tenants
at Springboro Plaza. The following tables set forth information with respect
to the amount of and expiration of the leases at this Community Center:
Approximate Current Rent per
GLA Lease Renewal Annual Rent Square Foot
Lessee Leased Ends Option ($) ($)
------ ---------- ----- ------ ----------- -----------
Kroger 56,634 04/17 5/5 yr. 371,519 6.56
Kmart 91,266 06/17 5/5 yr. 479,147 5.25
China Garden 4,000 02/03 1/5 yr. 48,000 12.00
Classic Cards 2,134 11/03 1/5 yr. 24,157 11.00
-7-
<TABLE>
<CAPTION>
Average Percent of Percent of
Base Rent Total Annual Base
Annual Base Total Per Square Building GLA Rent
Approx. GLA Rent of Annual Foot Under Represented Represented
Year Number of of Expiring Expiring Base Expiring by Expiring By Expiring
Ending Leases Leases Leases Rent (1) Leases Leases Leases
December 31, Expiring (Sq. Ft.) ($) ($) ($) (%) (%)
- ----------- --------- ----------- ----------- ----------- ---------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
1998 - - - 922,140 - - -
1999 - - - 923,207 - - -
2000 - - - 924,274 - - -
2001 - - - 925,341 - - -
2002 - - - 926,408 - - -
2003 2 6,134 75,742 926,408 12.35 3.98 8.18
2004 - - - 850,666 - - -
2005 - - - 850,666 - - -
2006 - - - 850,666 - - -
2007 - - - 850,666 - - -
(1) We made no assumptions regarding the re-leasing of expired leases. It is the opinion
of our management that the space will be re-leased at market rates at the time of re-leasing.
</TABLE>
We received a letter appraisal prepared by an independent appraiser who is a
member in good standing of the American Institute of Real Estate Appraisers.
The appraisal reported a fair market value for the Springboro Plaza property as
of October 16, 1998, of $9,500,000. You should note that appraisals are
estimates of value and, therefore, you should not rely upon them as a measure
of true worth or realizable value.
Riverplace Centre, Noblesville, Indiana
On November 12, 1998, we purchased the entire fee simple interest in a
Neighborhood Retail Center located at Logan Street and Nixon Street in
Noblesville, Indiana known as "Riverplace Centre". We purchased Riverplace
Centre from Midwest Strip Center Partners, an unaffiliated third party, for
approximately $6,065,000. We paid for Riverplace Centre using cash and cash
equivalents. The purchase price was approximately $81.51 per square foot,
which we concluded was fair and reasonable based on, among other things, an
appraisal that we received and presented to our board of directors.
-8-
Riverplace Centre, built in 1992 and added to in 1994, is a one-story, multi-
tenant retail facility. Riverplace Centre contains 74,414 leasable square
feet. As of November 19, 1998, Riverplace Centre was 100% leased. When we
evaluated Riverplace Centre as a potential acquisition, we considered a variety
of factors including location, demographics, tenant mix, price per square foot,
existing rental rates compared to market rates, and occupancy. We believe that
the center is located within a vibrant economic area. The center is newly
constructed and has a grocery store, Kroger as its anchor. We did not consider
any other factors when we decided to acquire the property.
We do not anticipate making any significant repairs and improvements to
Riverplace Centre over the next few years. However, if we were to make any
repairs or improvements, a substantial portion of any monies spent on repairs
and improvements would be paid by the center's tenants, pursuant to the terms
of our leases with these tenants.
The table below sets forth the occupancy rate at Riverplace Centre expressed as
a percentage of total gross leasable area and the average annual base rent per
square foot:
Occupancy Rate Effective
as of Annual Rental
December 31, Rate Per Leasable
Year Ending of Each Year Square Ft
December 31, (%) ($)
------------ ------------ -------------
1997 100 8.10
1996 100 8.07
1995 100 8.00
1994* 100 5.42
1993* 100 7.25
* As of December 31, 1993, only the 50,000 square foot Kroger store existed.
During 1994, the additional 24,414 square feet was completed and leased in July
and August.
Tenants leasing more than 10% of the total gross leasable area of the property
are Kroger, a grocery store and Fashion Bug, a discount women's clothes store.
These leases require the tenants to pay base annual rent on a monthly basis as
follows:
Base Rent
Per Square
Approximate Foot Per
GLA % of Total Annum Lease Term
Lessee Leased GLA ($) Beginning To
----------- ----------- ----------- ------------ ------------ ---------
Kroger 50,000 67 7.25 Currently 01/31/12
Option 1 7.25 02/01/12 01/31/17
Option 2 7.25 02/01/17 01/31/22
Option 3 7.25 02/01/22 01/31/27
Option 4 7.25 02/01/27 01/31/32
Option 5 7.25 02/01/32 01/31/37
Option 6 7.25 02/01/37 01/31/42
Fashion Bug 10,800 15 7.50 Currently 01/31/05
Option 1 8.00 02/01/05 01/31/10
Option 2 8.50 02/01/10 01/31/15
Option 3 9.00 02/01/15 01/31/20
Option 4 9.50 02/01/20 01/31/25
-9-
For federal income tax purposes, our depreciable basis in Riverplace Centre
will be approximately $4,500,000. 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 years.
Real estate taxes paid in 1998 for the tax year ended 1997 were $99,564. The
real estate taxes payable were calculated by multiplying the taxable value by a
tax rate of 10.4118%.
On November 19, 1998, a total of 74,414 square feet was leased to eleven
tenants at Riverplace Centre. The following tables set forth information with
respect to the amount of and expiration of the leases at this Neighborhood
Retail Center:
Approximate Current Rent per
GLA Lease Renewal Annual Rent Square Foot
Lessee Leased Ends Option ($) ($)
------ ---------- ----- ------ ----------- -----------
Stewart Title 1,400 08/99 - 18,200 13.00
Fashion Bug 10,800 01/05 4/5 yr. 81,000 7.50
Great Clips 1,400 06/99 1/5 yr. 18,550 13.25
H & R Block 1,460 04/00 - 16,790 11.50
Shatar Rent to Own 3,154 07/99 1/3 yr. 30,752 9.75
Crystal Cleaners 1,400 07/99 - 18,200 13.00
Kroger 50,000 01/12 6/5 yr. 362,500 7.25
Papa John's Pizza 1,200 07/99 2/5 yr. 15,756 13.13
Mail Boxes Etc. 1,200 07/99 1/5 yr. 15,000 12.50
Personal Finance Co 1,200 06/01 - 15,000 12.50
Staffmark 1,200 04/02 - 14,700 12.25
-10-
<TABLE>
<CAPTION>
Average Percent of Percent of
Base Rent Total Annual Base
Annual Base Total Per Square Building GLA Rent
Approx. GLA Rent of Annual Foot Under Represented Represented
Year Number of of Expiring Expiring Base Expiring by Expiring By Expiring
Ending Leases Leases Leases Rent (1) Leases Leases Leases
December 31, Expiring (Sq. Ft.) ($) ($) ($) (%) (%)
- ----------- --------- ----------- ----------- ----------- ---------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
1998 - - - 606,448 - - -
1999 6 9,754 116,458 606,448 11.94 13.11 19.20
2000 1 1,460 16,790 489,990 11.50 1.96 3.43
2001 1 1,200 15,000 473,200 12.50 1.61 3.17
2002 1 1,200 14,700 458,200 12.25 1.61 3.21
2003 - - - 443,500 - - -
2004 - - - 443,500 - - -
2005 1 10,800 81,000 443,500 7.50 14.51 18.26
2006 - - - 362,500 - - -
2007 - - - 362,500 - - -
(1) We made no assumptions regarding the re-leasing of expired leases. It is the opinion
of our management that the space will be re-leased at market rates at the time of re-leasing.
</TABLE>
We received a letter appraisal prepared by an independent appraiser who is a
member in good standing of the American Institute of Real Estate Appraisers.
The appraisal reported a fair market value for the Riverplace Centre property
as of October 15, 1998, of $6,200,000. You should note that appraisals are
estimates of value and, therefore, you should not rely upon them as a measure
of true worth or realizable value.
Elmwood Park Shopping Center (Phase I), Elmwood Park, Illinois
On November 16, 1998, we purchased the entire fee simple interest in a
Neighborhood Retail Center located at 7330-7400 North Avenue in Elmwood Park,
Illinois known as "Elmwood Park Shopping Center (Phase I)". We purchased
Elmwood Park Shopping Center (Phase I) from Elmwood Park, LLC, an unaffiliated
third party, for approximately $2,753,000. We paid for Elmwood Park Shopping
Center (Phase I) using cash and cash equivalents. The purchase price was
approximately $113.74 per square foot, which we concluded was fair and
reasonable based on, among other things, an appraisal that we received and
presented to our board of directors.
-11-
Elmwood Park Shopping Center (Phase I), built in 1997, is a one-story, single-
tenant retail facility. Elmwood Park Shopping Center (Phase I) contains 18,264
leasable square feet. As of November 19, 1998, Elmwood Park Shopping Center
(Phase I) was 100% leased. When we evaluated Elmwood Park Shopping Center
(Phase I) as a potential acquisition, we considered a variety of factors
including location, demographics, price per square foot, existing rental rates
compared to market rates, and occupancy. We believe that the center is located
within a vibrant economic area. We did not consider any other factors when we
decided to acquire the property.
We do not anticipate making any significant repairs and improvements to Elmwood
Park Shopping Center (Phase I) over the next few years. However, if we were to
make any repairs or improvements, a substantial portion of any monies spent on
repairs and improvements would be paid by the center's tenants, pursuant to the
terms of our leases with these tenants.
The table below sets forth the occupancy rate at Elmwood Park Shopping Center
(Phase I) expressed as a percentage of total gross leasable area and the
average annual base rent per square foot:
Occupancy Rate Effective
as of Annual Rental
December 31, Rate Per Leasable
Year Ending of Each Year Square Ft
December 31, (%) ($)
------------ ------------ -------------
1997 100 14.50
One tenant, Total Beverage, a discount liquor store, leases 100% of the total
gross leasable area of the property. This lease requires the tenant to pay
base annual rent on a monthly basis as follows:
Base Rent
Per Square
Approximate Foot Per
GLA % of Total Annum Lease Term
Lessee Leased GLA ($) Beginning To
----------- ----------- ----------- ------------ ------------ ---------
Total Beverage 18,264 100 14.50 Currently 08/31/02
16.00 09/01/02 08/31/07
Option 1 17.75 09/01/07 08/31/12
Option 2 19.75 09/01/12 08/31/17
Option 3 21.75 09/01/17 08/31/22
For federal income tax purposes, our depreciable basis in Elmwood Park Shopping
Center (Phase I) will be approximately $2,000,000. 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 years.
-12-
Real estate taxes paid in 1998 for the tax year ended 1997 were $74,992. The
real estate taxes payable were calculated by multiplying the assessed value by
an equilizer of 2.1489% and a tax rate of 11.074%.
On November 19, 1998, a total of 18,264 square feet was leased to one tenant at
Elmwood Park Shopping Center (Phase I). The following tables set forth
information with respect to the amount of and expiration of the lease at this
Neighborhood Retail Center:
Approximate Current Rent per
GLA Lease Renewal Annual Rent Square Foot
Lessee Leased Ends Option ($) ($)
------ ---------- ----- ------ ----------- -----------
Total Beverage 18,264 08/07 3/5 yr. 264,828 14.50
<TABLE>
<CAPTION>
Average Percent of Percent of
Base Rent Total Annual Base
Annual Base Total Per Square Building GLA Rent
Approx. GLA Rent of Annual Foot Under Represented Represented
Year Number of of Expiring Expiring Base Expiring by Expiring By Expiring
Ending Leases Leases Leases Rent (1) Leases Leases Leases
December 31, Expiring (Sq. Ft.) ($) ($) ($) (%) (%)
- ----------- --------- ----------- ----------- ----------- ---------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
1998 -
2002 - - - 264,828 - - -
2003 -
2006 - - - 292,224 - - -
2007 1 18,264 229,224 229,224 16.00 100 100
(1) We made no assumptions regarding the re-leasing of expired leases. It is the opinion of our
management that the space will be re-leased at market rates at the time of re-leasing.
</TABLE>
We received a letter appraisal prepared by an independent appraiser who is a
member in good standing of the American Institute of Real Estate Appraisers.
The appraisal reported a fair market value for the Elmwood Park Shopping Center
(Phase I) property, as of November 4, 1998, of $2,775,000. You should note
that appraisals are estimates of value and, therefore, you should not rely upon
them as a measure of true worth or realizable value.
-13-
Marketplace at Six Corners, Chicago, Illinois
On November 30, 1998, we purchased the entire fee simple interest in a
Neighborhood Retail Center located at Irving Park Road and Cicero Avenue in
Chicago, Illinois known as "Marketplace at Six Corners." We purchased
Marketplace at Six Corners from Six Corners Development L.L.C., an unaffiliated
third party, for approximately $18,875,000 or approximately $161.32 per square
foot. We paid for the purchase price for this property entirely in cash and
cash equivalents. We believe the purchase price was fair and reasonable based
on, among other things, an appraisal from a third party that we received and
presented to our board of directors.
We subsequently borrowed $11,200,000 and gave the lender security interest in
this property. The loan requires us to pay interest on a monthly basis at a
rate equal to 6.85% per annum. The principal amount of the loan is due
December 1, 2003. We paid loan fees at closing of $56,000.
Marketplace at Six Corners, built in 1997, is comprised of two one-story,
multi-tenant retail facilities, containing a total of 117,000 leasable square
feet. As of November 30, 1998, Marketplace at Six Corners was 100% leased. We
considered a variety of factors in deciding to purchase this property including
location, demographics, tenant mix, price per square foot, existing rental
rates compared to market rates, and occupancy. We believe that the center is
located within a densely populated and vibrant economic area. We like this
center because it is grocery anchored, three of the tenants are public
companies and the last tenant is a jeweler who has been in business for 40
years.
We do not anticipate making any significant repairs and improvements to this
property over the next few years. However, if we were to make any repairs or
improvements, the center's tenants are obligated to pay a substantial portion
of any monies spent on repairs and improvements.
The table below sets forth the occupancy rate at Marketplace at Six Corners
expressed as a percentage of total gross leasable area and the average annual
base rent per square foot:
Occupancy Rate Effective
as of Annual Rental
December 31, Rate Per Leasable
Year Ending of Each Year Square Ft
December 31, (%) ($)
------------ ------------ -------------
1997 98 15.11
-14-
Tenants leasing more than 10% of the total gross leasable area of the property
are Marshall's, a discount clothing store and Jewel/Osco, a grocery/drug store.
These leases require the tenants to pay base annual rent on a monthly basis as
follows:
Base Rent
Per Square
Approximate Foot Per
GLA % of Total Annum Lease Term
Lessee Leased GLA ($) Beginning To
----------- ----------- ----------- ------------ ------------ ---------
Marshall's 34,000 29 15.00 Currently 07/31/02
16.00 08/01/02 07/31/07
17.00 08/01/07 01/31/13
Option 1 18.00 02/01/13 01/31/18
Option 2 19.00 02/01/18 01/31/23
Option 3 20.00 02/01/23 01/31/28
Jewel/Osco 70,000 60 15.00 Currently 11/30/12
Option 1 15.00 12/01/12 11/30/27
Option 2 15.00 12/01/27 11/30/42
For federal income tax purposes, our depreciable basis in Marketplace at Six
Corners will be approximately $14,000,000. 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 years.
Real estate taxes payable in 1998 for the tax year ended 1997 were $223,362.
The real estate taxes payable were calculated by multiplying the assessed value
by an equalizer of 2.1489% and a tax rate of 8.843%.
On November 30, 1998, a total of 117,000 square feet was leased to five tenants
at Marketplace at Six Corners. The following tables set forth information with
respect to the amount of and expiration of the leases at this Neighborhood
Retail Center:
Approximate Current Rent per
GLA Lease Renewal Annual Rent Square Foot
Lessee Leased Ends Option ($) ($)
------ ---------- ----- ------ ----------- -----------
Marshall's 34,000 01/13 3/5 yr. $ 510,000 $15.00
Kay-Bee Toy &
Hobby Shop 5,000 12/02 1/5 yr. 100,000 20.00
Blockbuster Video 6,000 08/07 2/5 yr. 108,000 18.00
Sandberg Jewelers 2,000 03/03 - 36,000 18.00
Jewel/Osco 70,000 11/12 2/15 yr. 1,050,000 15.00
-15-
<TABLE>
<CAPTION>
Average Percent of Percent of
Base Rent Total Annual Base
Annual Base Total Per Square Building GLA Rent
Approx. GLA Rent of Annual Foot Under Represented Represented
Year Number of of Expiring Expiring Base Expiring by Expiring By Expiring
Ending Leases Leases Leases Rent (1) Leases Leases Leases
December 31, Expiring (Sq. Ft.) ($) ($) ($) (%) (%)
- ----------- --------- ----------- ----------- ----------- ---------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
1998-
2001 - - - 1,804,000 - - -
2002 1 5,000 100,000 1,804,000 20.00 4.27 5.54
2003 1 2,000 36,000 1,756,000 18.00 1.71 2.05
2004-
2006 - - - 1,720,000 - - -
2007 1 6,000 126,000 1,720,000 21.00 5.13 7.33
(1) We made no assumptions regarding the re-leasing of expired leases. It is the opinion of our
management that the space will be re-leased at market rates at the time of re-leasing.
</TABLE>
We received a letter appraisal prepared by an independent appraiser who is a
member in good standing of the American Institute of Real Estate Appraisers.
The appraisal reported a fair market value for the Marketplace at Six Corners
property, as of September 8, 1998, of $19,000,000. You should note that
appraisals are estimates of value and, therefore, you should not rely upon them
as a measure of true worth or realizable value.
CarMax - Tinley Park, Tinley Park, Illinois
On December 1, 1998, we purchased the entire fee simple interest in a single-
user retail center located at 18800 South Oak Park Avenue in Tinley Park,
Illinois known as "CarMax - Tinley Park." We purchased CarMax - Tinley Park
from Circuit City Stores, Inc., an unaffiliated third party, for approximately
$18,900,000 or approximately $199.96 per square foot. We paid the purchase
price for this property entirely in cash and cash equivalents. We believe the
purchase price was fair and reasonable based on, among other things, an
appraisal from a third party that we received and presented to our board of
directors.
-16-
CarMax - Tinley Park, built in 1998, is a one-story, single-tenant retail
facility, containing a total of 94,518 leasable square feet. As of December 1,
1998, CarMax - Tinley Park was 100% leased. We considered a variety of factors
in deciding to purchase this property including location, demographics, tenant
mix, price per square foot, existing rental rates compared to market rates, and
occupancy. We believe that the center is located within a vibrant economic
area. We liked the fact that the lease for this property is with Circuit City
Stores, Inc., which is a public company.
We do not anticipate making any significant repairs and improvements to CarMax
- - Tinley Park over the next few years. However, if we were to make any repairs
or improvements, the center's tenant is obligated to pay a substantial portion
of any monies spent on repairs and improvements.
Circuit City Stores, Inc. (CarMax). leases 100% of the total gross leasable
area of the property. This lease requires the tenant to pay base annual rent
on a monthly basis as follows:
Base Rent
Per Square
Approximate Foot Per
GLA % of Total Annum Lease Term
Lessee Leased GLA ($) Beginning To
----------- ----------- ----------- ------------ ------------ ---------
Circuit City Stores,
Inc. (CarMax) 94,518 100 20.36 Currently 01/31/21
For federal income tax purposes, our depreciable basis in CarMax - Tinley Park
will be approximately $11,500,000. When we calculate depreciation expense, for
tax purposes, we will use the straight-line method. We depreciate buildings
and improvements based upon estimated useful lives of 40 years. The tenant
will pay all real estate taxes directly.
On December 1, 1998, a total of 94,518 square feet was leased to one tenant at
CarMax - Tinley Park. The following tables set forth information with respect
to the amount of and expiration of the lease at this single-user retail center:
Approximate Current Rent per
GLA Lease Renewal Annual Rent Square Foot
Lessee Leased Ends Option ($) ($)
------ ---------- ----- ------ ----------- -----------
Circuit City Stores,
Inc. (CarMax) 94,518 01/21 2/10 yr. 1,924,020 20.36
-17-
<TABLE>
<CAPTION>
Average Percent of Percent of
Base Rent Total Annual Base
Annual Base Total Per Square Building GLA Rent
Approx. GLA Rent of Annual Foot Under Represented Represented
Year Number of of Expiring Expiring Base Expiring by Expiring By Expiring
Ending Leases Leases Leases Rent Leases Leases Leases
December 31, Expiring (Sq. Ft.) ($) ($) ($) (%) (%)
- ----------- --------- ----------- ----------- ----------- ---------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
1998-
2007 - - - 1,924,020 - - -
</TABLE>
We received a letter appraisal prepared by an independent appraiser who is a
member in good standing of the American Institute of Real Estate Appraisers.
The appraisal reported a fair market value for the CarMax - Tinley Park
property, as of June 22, 1998, of $19,000,000. You should note that appraisals
are estimates of value and, therefore, you should not rely upon them as a
measure of true worth or realizable value.
CarMax - Schaumburg, Schaumburg, Illinois
On December 1, 1998, we purchased the entire fee simple interest in a single-
user retail center located at 250 East Golf Road in Schaumburg, Illinois known
as "CarMax - Schaumburg." We purchased CarMax - Schaumburg from Circuit City
Stores, Inc., an unaffiliated third party, for approximately $20,600,000 or
approximately $220.72 per square foot. We paid the purchase price for this
property entirely in cash and cash equivalents. We believe the purchase price
was fair and reasonable based on, among other things, an appraisal from a third
party that we received and presented to our board of directors.
CarMax - Schaumburg, built in 1998, is a one-story, single-tenant retail
facility, containing a total of 93,333 leasable square feet. As of December 1,
1998, CarMax - Schaumburg was 100% leased. We considered a variety of factors
in deciding to purchase this property including location, demographics, tenant
mix, price per square foot, existing rental rates compared to market rates, and
occupancy. We believe that the center is located within a vibrant economic
area. We liked the fact that the lease for this property is with Circuit City
Stores, Inc., which is a public company.
We do not anticipate making any significant repairs and improvements to CarMax
- - Schaumburg over the next few years. However, if we were to make any repairs
or improvements, the center's tenant is obligated to pay a substantial portion
of any monies spent on repairs and improvements.
-18-
Circuit City Stores, Inc. (CarMax), leases 100% of the total gross leasable
area of the property. This lease requires the tenant to pay base annual rent
on a monthly basis as follows:
Base Rent
Per Square
Approximate Foot Per
GLA % of Total Annum Lease Term
Lessee Leased GLA ($) Beginning To
----------- ----------- ----------- ------------ ------------ ---------
Circuit City Stores,
Inc. (CarMax) 93,333 100 22.47 Currently 01/31/21
For federal income tax purposes, our depreciable basis in CarMax - Schaumburg
will be approximately $12,700,000. When we calculate depreciation expense, for
tax purposes, we will use the straight-line method. We depreciate buildings
and improvements based upon estimated useful lives of 40 years. The tenant
will pay all real estate taxes directly.
On December 1, 1998, a total of 93,333 square feet was leased to one tenant at
CarMax - Schaumburg. The following tables set forth information with respect
to the amount of and expiration of the lease at this single-user retail center:
Approximate Current Rent per
GLA Lease Renewal Annual Rent Square Foot
Lessee Leased Ends Option ($) ($)
------ ---------- ----- ------ ----------- -----------
Circuit City Stores,
Inc. (CarMax) 93,333 01/21 2/10 yr. 2,097,084 22.47
<TABLE>
<CAPTION>
Average Percent of Percent of
Base Rent Total Annual Base
Annual Base Total Per Square Building GLA Rent
Approx. GLA Rent of Annual Foot Under Represented Represented
Year Number of of Expiring Expiring Base Expiring by Expiring By Expiring
Ending Leases Leases Leases Rent Leases Leases Leases
December 31, Expiring (Sq. Ft.) ($) ($) ($) (%) (%)
- ----------- --------- ----------- ----------- ----------- ---------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
1998-
2007 - - - 2,097,084 - - -
</TABLE>
We received a letter appraisal prepared by an independent appraiser who is a
member in good standing of the American Institute of Real Estate Appraisers.
The appraisal reported a fair market value for the CarMax - Schaumburg
property, as of July 28, 1998, of $21,000,000. You should note that appraisals
are estimates of value and, therefore, you should not rely upon them as a
measure of true worth or realizable value.
-19-
Staples, Freeport, Illinois
On December 2, 1998, we purchased the entire fee simple interest in a single-
user retail center located at 1722-1724 S. West Avenue in Freeport, Illinois
known as "Staples." We purchased Staples from Freeport Development Group,
L.L.C., an unaffiliated third party, for approximately $2,694,000 or
approximately $112.02 per square foot. We paid for the purchase price for this
property entirely in cash and cash equivalents. We believe the purchase price
was fair and reasonable based on, among other things, an appraisal from a third
party that we received and presented to our board of directors.
Staples, built in 1998, is a one-story, single-tenant retail facility,
containing a total of 24,049 leasable square feet. As of December 2, 1998,
Staples was 100% leased. We considered a variety of factors in deciding to
purchase this property including location, demographics, price per square foot,
existing rental rates compared to market rates, and occupancy. We believe that
the center is located within a vibrant economic area.
We do not anticipate making any significant repairs and improvements to Staples
over the next few years. However, if we were to make any repairs or
improvements, the tenant is obligated to pay a substantial portion of any
monies spent on repairs and improvements.
One tenant, Staples, an office supply store, leases 100% of the total gross
leasable area of the property. This lease requires the tenant to pay base
annual rent on a monthly basis as follows:
Base Rent
Per Square
Approximate Foot Per
GLA % of Total Annum Lease Term
Lessee Leased GLA ($) Beginning To
----------- ----------- ----------- ------------ ------------ ---------
Staples 24,049 100 11.50 Currently 09/30/13
Option 1 12.00 10/01/13 09/30/18
Option 2 12.50 10/01/18 09/30/23
Option 3 13.00 10/01/23 09/30/28
Option 4 13.50 10/01/28 09/30/33
For federal income tax purposes, our depreciable basis in Staples will be
approximately $2,000,000. When we calculate depreciation expense, for tax
purposes, we will use the straight-line method. We depreciate buildings and
improvements based upon estimated useful lives of 40 years.
On December 2, 1998, a total of 24,049 square feet was leased to one tenant at
Staples. The following tables set forth information with respect to the amount
of and expiration of the lease at this single-user retail center:
Approximate Current Rent per
GLA Lease Renewal Annual Rent Square Foot
Lessee Leased Ends Option ($) ($)
------ ---------- ----- ------ ----------- -----------
Staples 24,049 09/13 4/5 yr. 276,564 11.50
-20-
<TABLE>
<CAPTION>
Average Percent of Percent of
Base Rent Total Annual Base
Annual Base Total Per Square Building GLA Rent
Approx. GLA Rent of Annual Foot Under Represented Represented
Year Number of of Expiring Expiring Base Expiring by Expiring By Expiring
Ending Leases Leases Leases Rent (1) Leases Leases Leases
December 31, Expiring (Sq. Ft.) ($) ($) ($) (%) (%)
- ----------- --------- ----------- ----------- ----------- ---------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
1998-
2007 - - - 276,564 - - -
</TABLE>
We received a letter appraisal prepared by an independent appraiser who is a
member in good standing of the American Institute of Real Estate Appraisers.
The appraisal reported a fair market value for the Staples property, as of
April 15, 1998, of $2,725,000. You should note that appraisals are estimates
of value and, therefore, you should not rely upon them as a measure of true
worth or realizable value.
Park Center, Tinley Park, Illinois
On December 4, 1998, we purchased the entire fee simple interest in a Community
Center located at 16024 S. Harlem Avenue in Tinley Park, Illinois known as
"Park Center." We purchased Park Center from Prudential Insurance Co. of
America, an unaffiliated third party, for approximately $15,500,000 or
approximately $80.24 per square foot. We paid for Park Center using cash and
cash equivalents. We believe the purchase price was fair and reasonable based
on, among other things, an appraisal from a third party that we received and
presented to our board of directors.
Park Center, built in 1988, is a one-story, multi-tenant retail facility,
containing a total of 193,179 leasable square feet. As of December 4, 1998,
Park Center was 79% leased (100% leased if the master lease, which lasts for
three years, is considered). We considered a variety of factors in deciding to
purchase this property including location, demographics, tenant mix, price per
square foot, existing rental rates compared to market rates, and occupancy. We
believe that the center is located within a vibrant economic area.
We anticipate making approximately $395,000 of repairs and improvements to Park
Center over the next few years, primarily for parking lot overlay. We will pay
for these improvements from working capital reserves.
-21-
The table below sets forth the occupancy rate at Park Center expressed as a
percentage of total gross leasable area and the average annual base rent per
square foot:
Occupancy Rate Effective
as of Annual Rental
December 31, Rate Per Leasable
Year Ending of Each Year Square Ft
December 31, (%) ($)
------------ ------------ -------------
1997 74 6.94
1996 68 7.22
1995 90 9.75
1994 93 9.04
1993 96 5.16
One tenant, Cub Foods, a grocery store, leases more than 10% of the total gross
leasable area of the property. This lease requires the tenant to pay base
annual rent on a monthly basis as follows:
Base Rent
Per Square
Approximate Foot Per
GLA % of Total Annum Lease Term
Lessee Leased GLA ($) Beginning To
----------- ----------- ----------- ------------ ------------ ---------
Cub Foods 61,000 32 6.50 Current 08/31/08
Option 1 7.00 09/01/08 08/31/13
Option 2 7.50 09/01/13 08/31/18
Option 3 8.00 09/01/18 08/31/23
Option 4 8.50 09/01/23 08/31/28
Option 5 9.00 09/01/28 08/31/33
For federal income tax purposes, our depreciable basis in Park Center will be
approximately $11,600,000. 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 years.
Real estate taxes payable in 1998 for the tax year ended 1997 were $840,380.
The real estate taxes payable were calculated by multiplying the assessed value
by an equalizer of 2.1489% and a tax rate of 12.390%.
On December 4, 1998, a total of 153,050 square feet was leased to twenty-eight
tenants at Park Center. The following tables set forth information with
respect to the amount of and expiration of the leases at this Community Center:
Approximate Current Rent per
GLA Lease Renewal Annual Rent Square Foot
Lessee Leased Ends Option ($) ($)
------ ---------- ----- ------ ----------- -----------
Old Country Buffet 10,000 12/03 2/5 yr. 109,900 10.99
Radio Shack 3,125 01/99 - 331,250 10.00
Cub Foods 61,000 08/08 5/5 yr. 396,500 6.50
Firestone Tire 6,600 02/99 - 82,500 12.50
H & R Block 1,200 04/02 1/5 yr. 20,700 17.25
McDonald's 5,089 10/08 2/5 yr. 54,045 10.62
Blockbuster Video 6,400 09/03 2/5 yr. 86,400 13.50
-22-
Approximate Current Rent per
GLA Lease Renewal Annual Rent Square Foot
Lessee Leased Ends Option ($) ($)
------ ---------- ----- ------ ----------- -----------
Subway Sandwiches 1,600 03/00 1/5 yr. 27,200 17.00
Dana's Hallmark 4,375 12/01 - 48,125 11.00
Currency Exchange 1,600 11/03 - 31,200 19.50
RPM Cellular 1,600 10/01 - 22,400 14.00
One Hour Cleaners 1,300 04/99 - 23,374 17.98
Dark Side of
the Sun 1,755 04/01 1/1 yr. 17,550 10.00
The Collectors
Gallery 1,620 01/99 2/3 yr. 23,490 14.50
TCF Consumer
Financial 1,200 09/99 1/4 yr. 20,400 17.00
Amazing Fantasy
Comics 1,200 01/01 - 14,400 12.00
Amato Hair Design 1,200 12/01 - 18,000 15.00
Tinley Park Florist 1,200 05/99 - 18,600 15.50
Insure One 1,200 08/01 - 18,720 15.60
Optimal Dental 1,200 06/02 1/5 yr. 16,800 14.00
El Famous Burrito 1,650 02/02 1/10 yr. 39,287 23.81
Able Camera 1,200 04/01 1/5 yr. 19,800 16.50
Kenny's for Ribs 2,350 03/02 2/3 yr. 33,558 14.28
We Care Hair 1,225Month to Month - 28,775 23.49
Nail Salon 1,225 11/00 - 21,609 17.64
Chuck E. Cheese 9,040 01/99 - 149,160 16.50
Bud's Sport's
Place IV 10,514 08/07 - 97,149 9.24
Powerhouse Gym 11,382 10/08 - 79,674 7.00
Vacant 40,129
<TABLE>
<CAPTION>
Average Percent of Percent of
Base Rent Total Annual Base
Annual Base Total Per Square Building GLA Rent
Approx. GLA Rent of Annual Foot Under Represented Represented
Year Number of of Expiring Expiring Base Expiring by Expiring By Expiring
Ending Leases Leases Leases Rent (1) Leases Leases Leases
December 31, Expiring (Sq. Ft.) ($) ($) ($) (%) (%)
- ----------- --------- ----------- ----------- ----------- ---------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
1998 - - - 1,549,467 - - -
1999 7 24,085 349,374 1,544,361 14.51 12.47 24.22
2000 2 2,825 51,014 1,218,775 18.06 1.46 4.58
2001 7 12,530 169,845 1,186,156 13.56 6.49 14.32
2002 4 6,400 113,589 995,294 17.75 3.31 11.41
2003 3 18,000 244,720 928,207 13.60 9.32 26.36
2004 - - - 689,746 - - -
2005 - - - 701,128 - - -
2006 - - - 712,510 - - -
2007 1 10,514 102,091 712,510 9.71 5.44 14.33
(1) We made no assumptions regarding the re-leasing of expired leases. It is the opinion of our
management that the space will be re-leased at market rates at the time of re-leasing.
</TABLE>
-23-
We received a letter appraisal prepared by an independent appraiser who is a
member in good standing of the American Institute of Real Estate Appraisers.
The appraisal reported a fair market value for the Park Center property, as of
July 3, 1998, of $15,600,000. You should note that appraisals are estimates of
value and, therefore, you should not rely upon them as a measure of true worth
or realizable value.
Item 5. Other Events
Elmwood Park Shopping Center (Phase II).
On November 16, 1998, we purchased the entire fee simple interest in Elmwood
Park Shopping Center (Phase I). We now anticipate purchasing the entire fee
simple interest in a property known as "Elmwood Park Shopping Center (Phase
II)." Elmwood Park Shopping Center (Phase II) is a Neighborhood Retail Center
located adjacent to Elmwood Park Shopping Center (Phase I) on West North Avenue
in Elmwood Park, Illinois. Phase II is currently under construction and is
scheduled to be completed in December, 1998. Phase II consists of a one-story,
two-tenant retail building containing approximately 5,940 leasable square feet.
St. Louis Bread Company and Spring Communications, Inc. have entered into
leases to lease all of Phase II. We anticipate purchasing Phase II for
approximately $1,402,100.
Plymouth Collection Center, Plymouth, Minnesota
We anticipate purchasing the entire fee simple interest in the Plymouth
Collection Center located in Plymouth, Minnesota. We anticipate purchasing
this property from a seller who is an unaffiliated third party.
The Plymouth Collection Center was constructed in 1998. It is a single story,
multi-tenant Neighborhood Retail Center containing 40,815 rentable square feet.
We anticipate purchasing the Plymouth Collection Center for approximately
$6,626,000.
Circuit City, Traverse City, Michigan
We anticipate purchasing the entire fee simple interest in a Circuit City
located in Traverse City, Michigan. We anticipate purchasing this property
from a seller who is an unaffiliated third party.
This property was constructed in 1998 and is a single-user retail center
containing 21,337 rentable square feet. We anticipate purchasing this property
for approximately $2,900,000.
Hawthorn Hills Fashion Square, Vernon Hills, Illinois
We anticipate purchasing the entire fee simple interest in a Hawthorn Hills
Fashion Square located in Vernon Hills, Illinois. This property was
constructed in 1986 and is a single story multi-tenant retail center containing
204,584 rentable square feet. We anticipate purchasing this property for
approximately $20,000,000.
-24-
Colonial Plaza Shopping Center, Bloomington, Illinois
We anticipate purchasing the entire fee simple interest in a Colonial Plaza
Shopping Center located in Bloomington, Illinois. This property was
constructed in 1962 and is a single story multi-tenant retail center containing
229,616 rentable square feet. We anticipate purchasing this property for
approximately $13,700,000.
Hollywood Video, Hammond, Indiana
We anticipate purchasing the entire fee simple interest in a Hollywood Video
located in Hammond, Indiana. This property was constructed in 1998 and is a
single-user retail center containing 7,488 rentable square feet. We anticipate
purchasing this property for approximately $1,374,000.
-25-
Item 7. Financial Statements and Exhibits
To be subsequently filed.
-26-
SIGNATURE
Registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
Inland Real Estate Corporation
(Registrant)
By:/s/ KELLY TUCEK
Kelly Tucek
Chief Financial and Accounting Officer
Date: December 14 , 1998
-27-
