Kite Realty Group Trust Announces Strategic Joint Venture at Eddy Street Commons at the University of Notre Dame
January 12 2018 - 7:15AM
Kite Realty Group Trust (NYSE:KRG) (the “Company”) announced today
that it has entered into a joint venture to build and operate a
full-service Embassy Suites hotel at its Eddy Street Commons
property at the University of Notre Dame, which will be located
across the street from Notre Dame Stadium. The Company will own a
35% non-controlling interest in this $46 million-dollar project
that was partially funded with $6.0 million in tax increment
financing proceeds. In connection with this project, the joint
venture entered into a 7-year loan with a floating rate at LIBOR
+250bps for 24 months of construction and fixed at 5.02% for the
balance of the term.
“We continue to look to add these mixed-use
components to further upgrade our asset quality to generate
additional traffic and overall value to our retail portfolio,” said
John Kite, Chief Executive Officer. “In addition to Eddy Street, we
are currently pursuing residential opportunities at The Corner in
Indianapolis, Courthouse Shadows in Naples, and Holly Springs Towne
Center in Raleigh. We also have Parkside Town Commons in Raleigh,
which is already benefiting from a 294-unit apartment complex and
limited-service hotel.”
The hotel will be a key component of Phase II at
Eddy Street Commons, which is currently being developed in
cooperation with the University of Notre Dame. Along with the
hotel, which is expected to be completed in the second half of
2018, Phase II will include 406 upscale apartments, 22 residential
townhomes and condos, additional retail space and a community
center. Eddy Street Commons Phase I consists of 170,000 square feet
of retail and office space, 266 upscale apartments, 201 residential
townhomes and condos, and a Fairfield Inn.
About Kite Realty Group
Trust
Kite Realty Group Trust is a full-service,
vertically integrated real estate investment trust (REIT) engaged
primarily in the ownership and operation, acquisition, development
and redevelopment of high-quality neighborhood and community
shopping centers in select markets in the United States. As of
September 30, 2017, we owned interests in 117 operating and
redevelopment properties totaling approximately 23.1 million square
feet and two development projects currently under construction.
Our strategy is to maximize the cash flow of our
operating properties, successfully complete the construction and
lease-up of our redevelopment and development portfolio, and
identify additional opportunities to acquire or dispose of
properties to further strengthen the Company. New investments are
focused in the shopping center sector primarily in markets where we
believe we can leverage our existing infrastructure and
relationships to generate attractive risk-adjusted returns or
otherwise in desirable trade areas. Dispositions are generally
designed to increase the quality of our portfolio and to strengthen
the Company’s balance sheet.
Safe Harbor
Certain statements in this document that are not
historical fact may constitute forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Such statements
are based on assumptions and expectations that may not be realized
and are inherently subject to risks, uncertainties and other
factors, many of which cannot be predicted with accuracy and some
of which might not even be anticipated. Future events and actual
results, performance, transactions or achievements, financial or
otherwise, may differ materially from the results, performance,
transactions or achievements, financial or otherwise, expressed or
implied by the forward-looking statements. Risks, uncertainties and
other factors that might cause such differences, some of which
could be material, include, but are not limited to: national and
local economic, business, real estate and other market conditions,
particularly in light of low growth in the U.S. economy as well as
economic uncertainty caused by fluctuations in the prices of oil
and other energy sources; financing risks, including the
availability of, and costs associated with, sources of liquidity;
the Company’s ability to refinance, or extend the maturity dates
of, its indebtedness; the level and volatility of interest rates;
the financial stability of tenants, including their ability to pay
rent and the risk of tenant bankruptcies; the competitive
environment in which the Company operates; acquisition,
disposition, development and joint venture risks; property
ownership and management risks; the Company’s ability to maintain
its status as a real estate investment trust for federal income tax
purposes; potential environmental and other liabilities; impairment
in the value of real estate property the Company owns; the impact
of online retail and the perception that such retail has on the
value of shopping center assets; risks related to the geographical
concentration of the Company’s properties in Florida, Indiana and
Texas; insurance costs and coverage; risks associated with
cybersecurity attacks and the loss of confidential information and
other business interruptions; and other factors affecting the real
estate industry generally. The Company refers you to the documents
filed by the Company from time to time with the SEC, specifically
the section titled “Risk Factors” in the Company’s and the
Operating Partnership’s Annual Report on Form 10-K for the fiscal
year ended December 31, 2016, which discuss these and other factors
that could adversely affect the Company’s results. The Company
undertakes no obligation to publicly update or revise these
forward-looking statements, whether as a result of new information,
future events or otherwise.
Contact
Information: |
Dan Sink |
EVP & CFO |
(317) 577-5609 |
dsink@kiterealty.com |
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