CPPIB will acquire a 45% interest in the venture and Kimco will retain a 55% interest in addition to acting as the operating partner. Kimco will manage the properties. The companies say they intend to grow their joint venture through new retail properties or portfolio acquisitions. Kimco did not return a call to GlobeSt.com.
Other properties in the portfolio include: Oakwood Plaza in Hollywood, FL, a 871,723-square-foot center; the 411,375-square-foot Morena in San Diego; Redhawk Town Center in Temecula, CA, which is 345,113 square feet; and Rancho San Diego in El Cajon, CA, a 98,396-square-foot retail complex.
Kimco acquired these properties through its purchase of an 85% stake in PL Retail LLC, last year--a five million square foot portfolio--for $825 million. The price tag included the assumption of approximately $564 million in non-recourse mortgage debt and $50 million of perpetual preferred stock.
At the time, Kimco chairman Milton Cooper said the purchase price for the assets, which were 94% leased, were based on a 7.6% cap rate for the existing assets, plus $20 million for development rights at the Pentagon Centre.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
