In a rare hybrid of a sale-leaseback and an outright sale of grocery-anchored retail centers, Inland Real Estate Acquisitions, Inc. announced today that it has negotiated and closed on the purchase of a portfolio of nine Kroger-anchored shopping centers for approximately $79.9 million for a joint venture that includes one of the Inland real estate investment trusts.

Inland purchased all of the Kroger stores and the adjacent retail centers from The Kroger Co., which is one of the nation's top two grocery chains. Kroger had owned all of the shopping centers, which collectively total almost 810,000 square feet, for several years. As part of the agreement, Kroger has signed long-term, 15-year leases to continue its operations in each of the nine Kroger grocery stores. The agreement also affords Kroger the right to add fuel stations to some of the properties.

"This is an unusual sort of sale/sale-leaseback, and a unique bit of real estate magic," said Joe Cosenza, president of Inland Real Estate Acquisitions, Inc., who negotiated the transaction. "For Inland, it represents nine new leases with a credit tenant -- and the chance to lease retail space anchored by one of the nation's most reliable draws of retail traffic. Kroger, meanwhile, gets immediate capital from the value of its retail real estate while focusing on running its industry-leading grocery operations."

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