Kite Realty Group Trust Acquires Land and Commences Construction at Eddy Street Commons
2008-05-22 22:14:40 -
- Kite Realty Group Trust (NYSE: KRG) ("the Company") announced today that it has acquired and ground leased separate land parcels from the University of Notre Dame in South Bend, Indiana and has commenced construction on the Eddy Street Commons development project.
The Company entered into a long term ground lease with the University for the land necessary to complete the first phase of development which will include retail, office, and apartments. Project costs for the first phase are anticipated to total approximately $70 million. The Company will own the 165,000 square foot retail and office components which are currently 52% pre-leased or committed. Site work has commenced on this portion of the development and a formal ground breaking ceremony is scheduled for early June.
Additionally, the Company acquired a parcel of land on which a 1,281 space parking garage will be built. The garage and other infrastructure improvements will be funded with $35 million in Tax Increment Financing bond proceeds and other city incentives.
The Company and its hotel joint venture partner, White Lodging, also took title to land for the proposed development of two Marriott hotels. This future phase of the project is anticipated to include a full service hotel with upscale condominiums on the top floors as well as a limited service hotel.
"We are very pleased to announce the start of construction at Eddy Street Commons," said Thomas McGowan, Kite Realty Group's Chief Operating Officer. "The strong support of the University of Notre Dame, its Board of Trustees, and the City of South Bend has been instrumental in driving this project from a concept to a substantially pre-leased, first class development under construction."
In addition, the overall development plan incorporates additional for-sale residential components including a variety of condos and townhomes. This portion of the residential will be delivered in phases based upon market demand.
About Kite Realty Group Trust
Kite Realty Group Trust is a full-service, vertically integrated real estate investment trust engaged primarily on the development, construction, acquisition, ownership and operation of high quality neighborhood and community shopping centers in selected growth markets in the United States. The Company owns interests in a portfolio of operating retail properties, retail properties under development and redevelopment, operating commercial properties, a related parking garage, and parcels of land that may be used for future development of retail or commercial properties.
Safe Harbor
Certain statements in this document that are not historical fact may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results of the Company to differ materially from historical results or from any results expressed or implied by such forward-looking statements, including without limitation: national and local economic, business, real estate and other market conditions; the ability of tenants to pay rent; the competitive environment in which the Company operates; financing risks, including access to capital at desirable terms; property management risks; the level and volatility of interest rates; financial stability of tenants; the Company's ability to maintain its status as a REIT for federal income tax purposes; acquisition, disposition, development and joint venture risks; potential environmental and other liabilities; 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 Securities and Exchange Commission, which discusses 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 (including the FFO and net income estimates), whether as a result of new information, future events or otherwise.
Kite Realty Group Trust
Dan Sink, 317-577-5609
Chief Financial Officer
dsink@kiterealty.com
or
Kite Realty Group Trust
Adam Chavers, 317-713-5684
Director of Investor Relations
achavers@kiterealty.com
