Kimco To Buy 24 Properties In New England For $270M
Kimco Realty Corp. (NYSE: KIM) today announced the execution of a
purchase and sale agreement to acquire a 24-property retail portfolio in
New England for $270 million, including the assumption of $121.
Kimco Realty Corp. (NYSE: KIM) today announced the execution of a purchase and sale agreement to acquire a 24-property retail portfolio in New England for $270 million, including the assumption of $121.5 million of mortgage debt. With the addition of this 1.4-million-square-foot, 96-percent-occupied portfolio, Kimco will gain 17 properties in the Boston metropolitan market with anchor tenants including Whole Foods, Trader Joe’s, Lowes, Kohl’s, Petco, Pier 1 Imports, Aldi Supermarket, CVS and Walgreens. This portfolio represents a significant expansion of the company’s existing portfolio in this metropolitan area. In addition, the portfolio includes four other Massachusetts shopping centers, three of which are near Cape Cod, two high volume Kings Supermarket-anchored centers in northern New Jersey in close proximity to New York City, and one Wal-Mart-anchored center in Danbury, Conn. Closing is subject to customary conditions, including lender approvals, with Kimco expecting this transaction to be completed during the first quarter of 2014. “This acquisition is in line with our communicated strategy of focusing on key territories which boast solid demographics and growth potential,” said David Henry, Kimco’s president and CEO, adding, “The assets are largely located in the high barrier to entry Boston market with attractive infill locations and a large consumer base.” Several centers in the portfolio have more than 200,000 local residents within a three-mile range, including those strategically located near the colleges and universities of Boston College, Boston University, Harvard and MIT. The average population of these 24 assets is 25 percent higher than Kimco’s collective retail portfolio. The high density surrounding these properties has led to strong tenant sales volumes averaging $500 per-square-foot for those retailers that report sales. “Kimco remains committed to transforming its portfolio and we are excited about the long-term growth opportunity this acquisition provides,” commented Conor Flynn, Kimco’s COO. The 24-property New England portfolio features a diverse tenant mix that fits Kimco’s focus on grocery, necessity-based and discount retail anchored by strong brands. Anchor tenants comprise 81 percent of base rents.