InTown's 138 locations are concentrated in the Southeast and Southwest.

NEW HYDE PARK, NY-Kimco Realty Corp. said Friday it had closed on its sale of InTown Suites and related real estate assets to an affiliate of Greenwich, CT-based Starwood Capital Group. The $735-million acquisition by Starwood Distressed Opportunity Fund IX, which includes the assumption of $609 million in debt, was originally announced this past October.

The sale of InTown and its portfolio of 138 extended-stay properties across 21 states, mainly in the Southeast and Southwest, goes a long way toward realizing Kimco’s goal of shedding non-core assets. The portfolio represented the single largest remaining non-retail investment for the shopping center REIT, with a book value of approximately $83 million, according to a release.

As a result of this sale and other non-retail divestitures completed during the second quarter, Kimco’s non-retail investment balance will be about $200 million. At less than 2% of gross assets, it’s the lowest level since the company began selling off its non-retail investments in 2010.

With a portfolio of approximately 18,000 keys concentrated in Texas, Georgia and Florida, InTown Suites was owned by InTown Hospitality Investors LP, a joint venture in which Kimco held a 75% interest. The REIT’s net proceeds from the sale to the Starwood capital affiliate was about $103 million, the release states. Citigroup served as the financial advisor to InTown Hospitality Investors on the sale.