Inland Real Estate Eyes Acquisitions Heading into 2012

http://www.reit.com Mark Zalatoris, president and chief executive officer of Inland Real Estate Corporation (NYSE: IRC), said the company's occupancy levels have improved as new tenants have entered key markets in Chicago and Minneapolis.

Speaking with REIT.com during REITWorld 2011: NAREIT's Annual Convention for All Things REIT in Dallas last month, Zalatoris said those new tenants include Ross Dress for Less, Gordmans and H.H. Gregg.

"We have been very fortunate in that we have been the beneficiary of their market expansions," Zalatoris said. In addition, he said, "some of our tenants are doing some right-sizing and we have been able to offer them the right type and size of space and drawn them from competing centers."

Inland has capital available to pursue strategic acquisitions, including funds from Dutch pension fund PGGM. Zalatoris said the two are targeting necessity-based shopping centers in the upper Midwest.

Looking to 2012, Zalatoris said what has him most optimistic is that there is capital available (particularly from inland's partners including PGGM) and there are quality acquisitions to target.

"We are also working with some of our developers we have done business with in the past on off-market deals," he said.

Zalatoris said he expects to see the company continue to have a robust pipeline of new acquisitions going into 2012. "The fact that the retailers feel very optimistic about the future and are continuing to express a desire to expand should continue in 2012 as well," he said.

On the flip side, Zalatoris said macroeconomic issues continue to be a concern throughout the real estate industry and country as a whole.

"There is concern European contagion could possibly spread back to the United States. Consumer sentiment is what could impact our retailers in a negative way. And if it does turn negative there expansion plans may be scaled back and that would trickle down and affect us," he said.

By Matt Bechard

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