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FREDERICKSBURG, VA-The New Hyde Park, NY-based Kimco Realty Corp. has acquired a portfolio of 45 Virginia properties in an $85.3-million transaction. The company now has an interest in more than 800 properties in 42 states, Canada and Mexico. Located in Fredericksburg, Richmond and Stafford, VA, the recently acquired assets comprise approximately 311,000 sf with 31 of the 45 properties representing ground leases that give tenants full responsibility for all operating expenses, structural repairs and maintenance. The name of the portfolio's former owner was not disclosed.

"There are pretty good growth opportunities in our recent portfolio," Michael Pappagallo, the REIT's vice president and chief financial officer, told investors at the NAREIT Institutional Investor Forum in New York City Wednesday. "Really, what we are focusing on is redevelopment and an expansion of opportunities." Kimco officials did not return a call seeking further comment on the acquisitions.

The 45 Virginia properties are just the latest of many investments for the REIT. Kimco says it also has invested approximately $22 million in new developments in Knightdale, NC, and in Saltillo and Pachuca, Mexico. The North Carolina venture with Wakefield Associates bought the joint venture 52 acres on which it plans to develop a 460,000 sf shopping plaza anchored by Home Depot and Target. In Mexico, Kimco acquired 26 acres in Saltillo on which it plans to develop a 352,000 sf H-E-B anchored shopping center while in Pachuca, Kimco purchased about 11 acres to develop a 146,000 Wal-Mart anchored plaza.

Kimco said it also plans a joint venture buy with Vestar Development Co. of 59 acres in Tustin, CA within the Tustin Marine Air Base. Plans for the property call for the joint venture to develop The District at Tustin Legacy, a 1.1-million-sf lifestyle and power center.

The company also entered a joint venture with Capital Automotive REIT to acquire automotive retail real estate in Canada and recently purchased two car dealerships in Toronto as part of that deal. Kimco also closed on two additional preferred equity investments in Montreal totaling $4.2 million Canadian dollars, the REIT says.

On the sales end, Kimco recently sold several properties in Ohio, Pennsylvania and Florida for a combined total of approximately $40 million. In addition, the firm completed its issuance of medium-term notes totaling $200 million. The notes are due June 1, 2014 and have an interest rate of 4.82%. Proceeds from those notes will be used to reduce indebtedness, fund capital needs and for general corporate purposes.

Instant Insights /

Kimco Acquires 45-Property Portfolio in Virginia

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