NEW HYDE PARK, NY—Shopping-center REIT Kimco Realty Corp. said Thursday afternoon it had acquired the remaining 60.9% interest in the 12-property, 1.5-million-square-foot Kimco Income Fund I portfolio from its partners. The company is paying $408.2 million for the grocery- and necessity-anchored shopping centers, including the assumption of $38.2 million in mortgage debt and the repayment of $118.9 million in debt encumbering nine of the properties.
The REIT said the acquisition will advance its simplification goals, to include reducing the number of institutional joint ventures and partners, streamlining property ownership and management, and adding high-quality retail assets to its wholly owned portfolio. Additionally, the acquisition bolsters its position in key retail territories.
Kimco established KIF I in 2004, with equity coming primarily from insurance companies. Most of the properties are in the Mid-Atlantic and Northeast, but there is also a Kentucky center and one in California.
Real Estate Alert, which in December said the fund was marketing the portfolio for sale but noted that Kimco itself might be the buyer, reported that five of the centers are in Maryland. They include the 140,000-square-foot Enchanted Forest Shopping Center in Ellicott City; the 135,000-square-foot Wilkens Beltway Plaza in the Baltimore suburb of Catonsville; the 113,000-square-foot Shoppes at Easton in Easton; the 88,000-square-foot Radcliffe Center in Towson; and the 65,000-square-foot Perry Hall Centre in Perry Hall. The two other Mid-Atlantic centers are the 166,000-square-foot Brandywine Commons 2 in Wilmington, DE and the 133,000-square-foot Burke Town Plaza in Burke, VA.
Largest of the 12 centers is the 232,000-square-foot Festival at Hyannis Shopping Center in Hyannis, MA; and there are two other New England properties: the 72,000-square-foot Del Alba Plaza in Pittsfield, MA and the 176,000-square-foot Webster Square in Nashua, NH. The portfolio also includes the 169,000-square-foot Linda Mar Shopping Center in Pacifica, CA and the 100,000-square-foot Turfway Crossing in Florence, KY, near Cincinnati.
Kimco says household income within a three-mile radius of the centers averages $98,000, and the average base rent is $17.59 per square foot. Both exceed Kimco’s current portfolio averages, by 17% and 35%, respectively. The KIF portfolio is 98% occupied, and 10 of the 12 properties are anchored by the top one or two grocers in each respective market.