SOUTHFIELD, MI-Developers and investors Schostak Brothers & Co. have teamed up with New Hyde Park, NY-based Kimco Realty Corp. to purchase a portfolio of 28 shopping centers in 12 states for $100.5 million.

The neighborhood shopping centers range in size from 10,000 sf to 40,000 sf for a total of 685,000 sf. All are located adjacent to a Wal-Mart Supercenter in states including Indiana, Ohio, Texas, Iowa, Florida and Colorado. The portfolio, which is approximately 92% leased, was purchased from Memphis-based the Spectra Group Inc.

Linda Busse, director of corporate communications for Schostak, tells GlobeSt.com that the companies chose centers located next to Wal-Mart Supercenters because of the traffic and sales volume Wal-Mart draws to surrounding retailers. "The proximity to a Wal-Mart is like guaranteed traffic." When choosing a location, many smaller retailers select space near a Wal-Mart. Among chains located in several locations in the portfolio include Sally's Beauty Supply, Dollar Tree, GameStop and Cato, says Busse.

Schostak owns more than 50 properties including power centers, specialty centers and net leased free-standing retail properties. Among shopping centers the company owns in Michigan include Bloomfield Plaza Shopping Center in Bloomfield Hills; Cherryland Center in Traverse City; Lakewood Shopping Center in Belleville; and Northpointe in Utica. The company is developing a Wal-Mart and Target anchored center in Livonia, a power center anchored by Target in Rochester Hills and mixed-use retail, office and residential developments in Northville Township and Oak Park.

Kimco Realty is a REIT that owns and operates 1,048 properties comprising approximately 135.8 million sf in the United States, Canada, Mexico and Puerto Rico. Schostak and Kimco have teamed up on other joint ventures in the past, such as the acquisition of Cranberry Commons, a 170,000-sf power center in Cranberry Township, PA. "The company is always looking for acquisition of centers that fit well into our portfolio," Busse says.