Kimco Realty Corp. (NYSE:KIM) today announced it has acquired from
Canada Pension Plan Investment Board the remaining 45% ownership
interest in the Oakwood Plaza shopping center and the Dania Pointe
development project for a gross price of $299.2 million, including the
assumption of $100.0 million of mortgage debt.
Located in Hollywood, Fla., Oakwood Plaza and Dania Pointe are adjacent
properties situated along a heavily traveled section of I-95 (260,000
cars/day) with approximately two miles of freeway frontage. In addition,
the properties are in close proximity to the busy Fort
Lauderdale-Hollywood International Airport (24.6 million annual
passengers) and Port Everglades international cruise port (3.8 million
annual passengers).
Oakwood Plaza is a fully-occupied, 900,000-square-foot open-air center
featuring a collection of national tenants including Home Depot,
Marshalls, HomeGoods, Ross Stores, Michaels, PetSmart, BJ’s and Regal
Cinemas. The gross purchase price for Oakwood Plaza was $215.0 million
including the assumption of $100.0 million of mortgage debt.
Dania Pointe is a mixed-use, ground-up development project that will
include approximately 900,000 square feet of retail stores and
restaurants, 1,000 luxury apartments, two hotels totaling 300 rooms and
two office towers. Phase I will be a traditional 318,000-square-foot
open-air power center with construction expected to begin in the fall of
2016. Phase II will be a lifestyle center featuring 575,000 square feet
of main-street retail, residential towers and office buildings;
construction for Phase II is scheduled to start at the end of 2017. The
Dania Pointe project will benefit from the estimated daytime population
in excess of 1 million people within a 15-minute drive time.
This transaction is reflective of Kimco’s 2020 Vision of owning large,
high-quality assets in major metro markets in the U.S., while continuing
to reduce its joint venture portfolio. Oakwood Plaza ranks second in
Kimco’s Top 10 assets based on net operating income (NOI) and, when
completed, Dania Point will be the company’s highest NOI producing
property.
First Quarter Transaction Activity:
Transaction activity continues to reflect net selling and accumulation
of capital. During the first quarter of 2016, Kimco completed gross
transactions totaling approximately $460.8 million including the
disposition of 7 Canadian shopping centers as part of the company’s
pure-play U.S. shopping center initiative.
Dispositions:
-
The company sold interests in seven Canadian shopping centers totaling
1.7 million square feet for a gross sales price of USD $322.9 million,
including the assumption of USD $119.7 million of existing mortgage
debt. Kimco’s share of the sales price and debt assumption was USD
$155.3 million and USD $57.5 million, respectively.
-
Kimco sold six U.S. properties, totaling 767,000 square feet, for a
gross sales price of $107.6 million. The company’s share from these
sales was $103.7 million.
-
Kimco additionally sold four land parcels for a gross sales price of
$6.1 million. Included in these land sales and as previously
announced, the company sold 9.2 acres in Spring, Texas (Houston – The
Woodlands – Sugar Land metropolitan statistical area or “MSA”) to the
Target Corporation for the construction of a new store to anchor
Kimco’s new 450,000-square-foot Grand Parkway Marketplace.
Acquisitions:
-
As previously announced, Kimco acquired the remaining 50% ownership
interest in the Owings Mill Mall (Baltimore-Columbia-Towson MSA) for
$11.5 million. Separately, the company also acquired the parcels owned
by J.C. Penney Company, Inc. and Macy’s, Inc. for $5.2 million and
$7.5 million, respectively. As a result of these transactions, Kimco
owns 100% of the Owings Mills Mall and plans to develop a new open-air
center in its place.
ABOUT KIMCO
Kimco Realty Corp. (NYSE:KIM) is a real estate investment trust (REIT)
headquartered in New Hyde Park, N.Y., that is North America’s largest
publicly traded owner and operator of open-air shopping centers. As of
December 31, 2015, the company owned interests in 564 U.S. shopping
centers comprising 90 million square feet of leasable space across 38
states and Puerto Rico. 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.
SAFE HARBOR STATEMENT
The statements in this news release state the company’s and management’s
intentions, beliefs, expectations or projections of the future and are
forward-looking statements. It is important to note that the company’s
actual results could differ materially from those projected in such
forward-looking statements. Factors which may cause actual results to
differ materially from current expectations include, but are not limited
to, (i) general adverse economic and local real estate conditions, (ii)
the inability of major tenants to continue paying their rent obligations
due to bankruptcy, insolvency or a general downturn in their business,
(iii) financing risks, such as the inability to obtain equity, debt or
other sources of financing or refinancing on favorable terms to the
company, (iv) the company’s ability to raise capital by selling its
assets, (v) changes in governmental laws and regulations, (vi) the level
and volatility of interest rates and foreign currency exchange rates and
management’s ability to estimate the impact thereof, (vii) risks related
to the company’s international operations, (viii) the availability of
suitable acquisition and disposition opportunities, and risks related to
acquisitions not performing in accordance with our expectations, (ix)
valuation and risks related to the company’s joint venture and preferred
equity investments, (x) valuation of marketable securities and other
investments, (xi) increases in operating costs, (xii) changes in the
dividend policy for the company’s common stock, (xiii) the reduction in
the company’s income in the event of multiple lease terminations by
tenants or a failure by multiple tenants to occupy their premises in a
shopping center, (xiv) impairment charges and (xv) unanticipated changes
in the company’s intention or ability to prepay certain debt prior to
maturity and/or hold certain securities until maturity. Additional
information concerning factors that could cause actual results to differ
materially from those forward-looking statements is contained from time
to time in the company’s SEC filings. Copies of each filing may be
obtained from the company or the SEC.
The company refers you to the documents filed by the company from time
to time with the SEC, specifically the section titled “Risk Factors” in
the company’s Annual Report on Form 10-K for the year ended December 31,
2015, as it may be updated or supplemented in the company’s Quarterly
Reports on Form 10-Q and the company’s other filings filed with the SEC,
which discuss these and other factors that could adversely affect the
company’s results.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160411005146/en/
Copyright Business Wire 2016