NEW HYDE PARK, NY—Kimco Realty has bought out its joint venture partner SEB Asset Management to take full ownership in a portfolio of 10 shopping enters in the Mid-Atlantic region, most of which are grocery-anchored properties. The REIT paid $275.8 million for the remaining 85% equity interest in the 1.4-million-square foot portfolio, including the assumption of $193.6 million in mortgage debt.

The properties are located in markets with high barriers to entry and strong household income levels, the REIT reports. The portfolio is 95.4% occupied and anchored by such brands as Giant Food, Harris Teeter, Weis Markets, Safeway and Food Lion. Shadow anchors include Kroger, Target, Lowes and Sam's Club. Other tenants are Ross Stores, Bed Bath & Beyond, Marshalls, Kohl's, PetSmart, and Michaels.

This is the latest deal in which Kimco bought out a JV partnership and part of a larger strategy of repositioning its portfolio with high-quality assets. So far this year the REIT has made three joint venture portfolio acquisitions, adding some 25 properties to its portfolio valued at $776.9 million.

These properties, which total about 3.2-million-square feet, have an average occupancy rate of 96.3% and average rent per square foot of $16.7.

In April Kimco acquired the remaining 60.9% interest in the 12-property Kimco Income Fund I portfolio from its joint venture partners for $408 million, including the assumption of $38.2 million in mortgage debt. These properties were also located in the Mid-Atlantic, but included holdings in the Northeast and Northern California.

This particular deal translated to a blended implied cap rate of 5.9%, according to comments made by COO Conor Flynn during the REIT's most recent earnings call.

Kimco plans to go on to sell two of these twelve assets, he said, because they do not "meet our quality and growth criteria."

In another JV buy out, in the first quarter, Kimco acquired three grocery-anchored properties totaling 316,000 square feet in the greater Baltimore area. Included in this package was York Road Plaza, a giant anchored shopping center doing over $800 a foot in sales, Flynn said.

More recently, CEO David Henry reported during that same earnings call, Kimco has "reached agreement with BIG, an Israeli public company and existing joint venture partner, to essentially divide 21 mutually owned shopping centers into three groups."

This includes a Kimco-owned portfolio of seven shopping centers comprising 1.2 million square feet, a BIG-owned portfolio of eight shopping centers comprising approximately the same square footage, and six assets that will continue to be owned jointly, he said.