Kimco Realty Corp. (NYSE:KIM), North America’s largest publicly traded
owner and operator of neighborhood and community shopping centers, today
announced that it has completed the purchase of a 24-property retail
portfolio in New England for $270 million, including the assumption of
$120.5 million of mortgage debt. The purchase is part of the company’s
strategy to transform its portfolio through the acquisition of
high-quality centers in key territories with strong demographics and
growth potential, and to create value through select asset redevelopment
and repositioning.
The 1.4-million-square-foot, 96-percent-occupied portfolio includes 17
shopping centers in the Boston metropolitan area, marking a significant
expansion for the company in this desirable retail market with
attractive infill locations and a large consumer base. Several centers
have more than 200,000 local residents within a three-mile radius,
including those strategically located near Boston College, Boston
University, Harvard and MIT. The portfolio also includes four other
Massachusetts shopping centers, three of which are near Cape Cod, two
grocery-anchored centers in northern New Jersey near New York City, and
one Wal-Mart-anchored center in Danbury, Connecticut.
The tenant mix in the newly acquired portfolio is aligned with Kimco’s
focus on grocery, necessity-based and discount retailers. The centers
are anchored by investment-grade chains such as Whole Foods, Trader
Joe’s, Lowe’s, CVS and Walgreens, with anchor tenants comprising 81
percent of the portfolio’s base rent. The average population within a
three-mile radius of these assets is over 25 percent higher than that of
Kimco’s collective retail portfolio, leading to strong sales volumes.
With average rents in the portfolio significantly below market, Kimco
sees the potential for substantial income growth over the next 10 years
through in-place rent increases and lease roll-over. Furthermore, the
well-located, mature assets in the portfolio offer a multitude of
opportunities for redevelopment, repositioning and re-tenanting over the
mid- to long-term, with several sites containing undeveloped outparcels
that make expansion an appealing possibility.
About Kimco
Kimco Realty Corp. (NYSE:KIM) is a real estate investment trust (REIT)
headquartered in New Hyde Park, New York, that owns and operates North
America’s largest publicly traded portfolio of neighborhood and
community shopping centers. As of December 31, 2013, the company owned
interests in 852 shopping centers comprising 125 million square feet of
leasable space across 44 states, Puerto Rico, Canada, Mexico and South
America. Publicly traded on the NYSE since 1991, and included in the S&P
500 Index, the company has specialized in shopping center acquisitions,
development and management for more than 50 years. For further
information, please visit www.kimcorealty.com,
the company’s blog at blog.kimcorealty.com,
or follow Kimco on Twitter at www.twitter.com/kimcorealty.
Copyright Business Wire 2014