Kite Realty Group Trust Provides Leasing and Joint Venture Update for Parkside Town Commons Development Project in Raleigh, North Carolina; Provides Earnings Guidance for the Fourth Quarter of 2012
January 03, 2013 at 09:00 pm
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Kite Realty Group Trust provided a leasing and joint venture update for its planned Parkside Town Commons development project in Raleigh, North Carolina. Parkside Town Commons is a planned multi-phased 580,000 square foot retail development located in Raleigh, North Carolina. Phase I will be anchored by a Harris Teeter grocery store and a non-owned Target. Phase II will be anchored by Golf Galaxy, Frank Theatres CineBowl & Grille, and a new concept owned by a national credit tenant focused on outdoor activities such as hunting, fishing, and camping. Leasing Update -- Phase I: The development's primary anchor, Target Corporation, has acquired 10.7 acres of land for the construction of a 135,000 square foot store in the project's first phase. In addition, Harris Teeter-Neighborhood Food and Pharmacy has signed a ground lease and will construct a 53,000 square foot grocery store. Phase I of the development is expected to contain approximately 250,000 total square feet with an estimated project cost of approximately $39 million. Construction is anticipated to commence in early 2013 with an estimated opening in the Spring of 2014. Leasing Update -- Phase II: The second phase of the development is expected to contain a total of approximately 330,000 square feet which includes square footage attributable to non-owned outlots. Leases have been executed with three of the primary anchor tenants in Phase II of the development: a 35,000 square foot Golf Galaxy; a 56,000 square foot Frank Theatres CineBowl & Grille which will include 12 screens, 16 bowling lanes, and a full-service restaurant; as well as a 50,000 square foot new concept owned by a national credit tenant focused on outdoor activities such as hunting, fishing, and camping. Phase II construction is anticipated to commence in late 2013 or early 2014 with an estimated project cost of approximately $66 million. Joint Venture Update: On December 31, 2012, in advance of construction commencement on the development, the company acquired its partner's 60% interest in the project for $13.3 million, including assumption of the partner's $8.7 million share of indebtedness on the project. The acquisition of the partner's interest is at a significant discount to book cost which enhances the company's overall project return and enables the Company to receive 100% of the future cash flow from this project. As a result of this opportunistic buyout, the company is required under generally accepted accounting principles to re-measure its original equity method investment in the development.
The company anticipates recognizing a net loss of approximately $7.8 million to $8.1 million for the fourth quarter of 2012.
Kite Realty Group Trust is a real estate investment trust (REIT). The Company, through its subsidiary, Kite Realty Group, L.P., is engaged in the ownership, operation, acquisition, development and redevelopment of open-air shopping centers and mixed-use assets. The Companyâs primarily grocery-anchored portfolio is located in Sun Belt and various markets in the United States. The Company collects contractual rents and reimbursement payments from tenants under existing lease agreements at each of its properties. The Company owns interests in approximately 180 operating retail properties totaling approximately 28.1 million square feet and one office property with 0.3 million square feet. Of the 180 operating retail properties, 10 contain an office component. The Company also owns two development projects under construction as of this date. The Companyâs subsidiary is Kite Realty Group, L.P.
Kite Realty Group Trust Provides Leasing and Joint Venture Update for Parkside Town Commons Development Project in Raleigh, North Carolina; Provides Earnings Guidance for the Fourth Quarter of 2012