Kimco Realty Buys $376M Shopping Center Portfolio

Image by Tom Pottiger via unsplash.com

In a $375.8 million deal, Kimco Realty has acquired a private and multi-generationally owned portfolio of eight shopping centers totaling 540,000 square feet of retail space in Long Island, N.Y.

The company used both cash and redeemable units to make the acquisition, as well as the assumption of $88.8 million of 4.1 percent mortgage debt with a remaining term of six years.

The portfolio includes:

• The Gardens at Great Neck
• The Market Place
• Stop & Shop Shopping Center
• Southgate Shopping Center (117,960 square feet)
• Woodbury Common (94,131 square feet)
• Syosset Corners (22,010 square feet)
• Green Cove Plaza (66,656 square feet)
• Sequams Shopping Center

The retail centers are located in a heavily trafficked and densely populated area, where the average household income within a 3-mile radius is between $95,000 and $187,000. The portfolio is currently 94.4 percent leased and some of the necessity-based tenants and retails include TJ Maxx, Rite Aid, Starbucks, Dunkin’ Donuts, Chipotle and GoHealth Urgent Care.

Kimco’s CEO, Conor Flynn, said in prepared remarks that the company has an annual base rent target coming from grocery-anchored centers of 85 percent. With the acquisition of the eight-property portfolio, Kimco currently owns 36 assets totaling more than 3.5 million square feet in the Long Island market.

Flynn recently shared his insights regarding commercial real estate in the current economic environment in a video conference with Marcus & Millichap CEO Hessam Nadji; former U.S. Treasury Secretary Lawrence Summers and Brookfield Asset Management Partner Swarup Katuri. Flynn cited a strong retail job market, mentioning Kimco has added $44 million to its net operating income, while also discussing the reopening of retail centers after the pandemic.