BOSTON-Locally based Newkirk Realty Trust, Inc. plans to sell 50 retail properties currently leased to Albertson's Inc. for $160 million to Kimco Realty Corp. and Schottenstein Stores Corp. The sale, which is expected to be completed during the third quarter of 2006, follows an announcement by Newkirk that it has formed a joint venture with Winthrop Realty Trust to acquire and originate loans secured by real estate assets.
Newkirk, which owns more than 200 properties in 35 states, did not specify the properties that will be part of the sales transaction in a statement released by the company. Neither Newkirk officials nor the buyers could not be reached for comment by GlobeSt.com by deadline.
In a statement announcing that it had signed a letter of intent with the Kimco and Schottenstein, Newkirk says the sale is subject to a number of conditions, including the buyers' due diligence review of the properties and the consummation by the buyers of their acquisition of certain Albertson's assets.
In a joint statement announcing the formation of a joint venture, Newkirk and Winthrop say both parties have entered into a $300-million repurchase agreement with Column Financial Inc. which will leverage up to 75% of the $100 million in assets held in the joint venture. The partners anticipate a second repurchase agreement which will enable the joint venture to obtain an additional $200 million in leverage and said it believes the joint venture will acquire and originate about $600 million in loan obligations secured by real estate assets.
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