INDIANAPOLIS, Jan. 12, 2018 (GLOBE NEWSWIRE) -- Kite Realty Group Trust (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.
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.
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