Inland's $2.2B Year

Look for Inland Group to spend $2.2B buying CRE this year ('11 was $1.5B), says vice chair Joe Cosenza. And (surprise, surprise) it’s retail—centers from New York to Georgia to Missouri. He calls this the company’s "greatest growth year." (Somebody console Multifamily; it's not used to losing prom queen.)
 
Joe closed on a $166M investment in City Center at White Plains last month, the best urban in-fill retail property he ever bought, he says. Last spring, he paid $75M for the Bayonne Crossing Shopping Center in NJ. The activity reflects a bright financing picture. Joe tells us that he can easily lock-up 10-year money at “extremely attractive fixed rates” and that he just did a deal with a “huge” bank that issued its first 10-year paper for a CRE loan.
 
Bayonne Crossing (above) and City Center across from a Ritz Carlton offer yield for a lender, says Joe. With CDs and T-bills paying mini returns, investors see real estate as the next safest place to park money (with mattresses and frozen yogurt franchises coming in a close third and fourth). Inflation won’t be a big problem for the next few years. But the economy, Joe says, is still “in the scare zone” with a long way to go before returning to normal. Joe likes that White Plains and Bayonne both have an array of stores that bring shoppers back weekly and rents low enough to withstand a blip in the economy.
 

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