REIT Kite Realty buys into NY, NJ markets with $1.2B deal

New York /
Feb.February 10, 2014 02:35 PM

Indianapolis-based real estate investment trust Kite Realty Group Trust is planning to buy rival REIT Inland Diversified Real Estate for $1.2 billion in stock in the second or third quarter of this year, according to Reuters. The move will help the group enter the New York and New Jersey markets, among other states, a representative of Kite Realty told Reuters.

The deal is part of Kite’s new focus on larger retail centers, which are better for profit than small strip and enclosed malls. Outdoor centers that offer ample parking and a “downtown” setting have been the hallmark of Kite Realty in South Florida because they attract consumers. The company will continue in this push in the New York metropolitan area.

“The trend is to incorporate a tenant mix of retailers, restaurants and entertainment in an area accessible to neighborhoods,” Jason Samreny, vice president of leasing of Kite Realty Group, told The Real Deal previously.

Inland will merge with one of Kite Realty’s subsidiaries and shareholders will receive 1.707 of Kite shares, or $10.50 for each Inland share held, Reuters said. Kite Realty currently owns 66 properties in 12 states, the majority of which are retail. Over the weekend, American Realty announced that it had closed on its acquisition of REIT Cole Real Estate in a deal valued at $7 billion. [Reuters] — Angela Hunt


Related Articles

arrow_forward_ios
Erin Lichy (homegirl.co, Getty)
Elliman agent to star in “Real Housewives of New York” reboot
Elliman agent to star in “Real Housewives of New York” reboot
From left: Pamela Liebman and Glenn Kelman (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images, Corcoran, Redfin)
Pam Liebman and Glenn Kelman want to buy your house – on TV
Pam Liebman and Glenn Kelman want to buy your house – on TV
99 Ranch Market (Samanea New York, iStock)
Asian grocery chain leases 45K sf in Westbury
Asian grocery chain leases 45K sf in Westbury
Deconstruct Podcast
Now streaming: Have the holidays brought shoppers back to stores?
Now streaming: Have the holidays brought shoppers back to stores?
What 3 big mall bankruptcies say about the state of retail
What 3 big mall bankruptcies say about the state of retail
What 3 big mall bankruptcies say about the state of retail
 Samanea New York at 1504 Old Country Road in Westbury (Facebook, Google Maps)
Long Island mall vacancy rates range from 35% to 5%
Long Island mall vacancy rates range from 35% to 5%
Rendering of the Meadowlands Sports Arena with Convention Center (Meadowlands 2040 Foundation)
Convention center planned near American Dream mall
Convention center planned near American Dream mall
The Domain in Austin with Simon Property Group CEO David Simon (Simon Property)
Here’s what tenants pay (and pull in) at the Domain in Austin
Here’s what tenants pay (and pull in) at the Domain in Austin
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...