Kimco Buys Kentlands Market Square for $95M

Kentlands Market Square

GAITHERSBURG, MD–Kimco Realty has acquired Kentlands Market Square, a 251,000-square foot shopping center for $95 million. Separately, it has also bought the remaining 85% stake in a four-property joint venture portfolio that includes Doc Stone Commons in Stafford, Va.

The Kentlands Market Square transaction brings Kimco to the mid-point, or $250 million, of its projected 2017 acquisition range of $450 million to $550 million. Kentlands Market Square is currently 69.1% occupied and — perhaps more importantly in this affluent master-planned community — anchored by Whole Foods.  CIO Ross Cooper devoted several minutes to the acquisition during the REIT’s Q2 earnings call noting that:

This Metro DC asset provides a unique opportunity to own a highly coveted infill asset with excellent grocery sales of almost $1,300 a square foot and also has significant near-term upside and redevelopment potential.

It is also one of only two shopping centers Kentlands’ commercial district.  There is also the additional potential for mixed-use development and densification at the site, according to Kimco.