Kimco Realty (KIM) Announces Acquisition of Majority Stake in Four-Property JV Portfolio

September 6, 2016 9:11 AM EDT

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Kimco Realty Corp. (NYSE: KIM) announced the acquisition of the remaining 85% interest in a four-property joint venture portfolio for a gross price of $170.7 million, which includes the assumption of $103 million in mortgage debt. Simultaneous with this acquisition, the company prepaid $26 million in mortgage debt associated with the acquired portfolio. The portfolio includes Perimeter Expo in Atlanta, Ga., Cranberry Commons in Pittsburgh, Pa., Cypress Towne Center in Houston, Texas and Doc Stone Commons in Stafford, Va. All four assets are located in major metro markets where Kimco already has a significant presence, and the acquisition furthers the company’s stated goal of reducing joint venture exposure.

Additionally during the third quarter, Kimco acquired Kentlands Market Square, a 251,000-square-foot, Whole Foods-anchored open-air shopping center located in the Washington-Arlington-Alexandria metropolitan statistical area (MSA) for $95.0 million. In addition to the high-volume Whole Foods, the property is anchored by national tenants such as PetSmart, Michaels and Starbucks, and is one of only two shopping centers located in the “downtown” commercial district of the Kentlands, an affluent, master-planned, suburban community in Gaithersburg, Md., a northwest suburb of Washington D.C. The center boasts excellent demographics including a three-mile population of 106,931 and median household income of $99,177.

Kentlands Market Square, which is currently 69.1% occupied, offers a multitude of near-term lease up and long-term redevelopment opportunities, with the surrounding community eager to see the center restored to its original vision of a walkable, “live-work-play” town center. There is also the additional potential for mixed-use development and densification at the site.

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