Kimco Pays $343M for 12 Western Centers

The two centers that New Hyde Park, NY-based Kimco bought on its own are the 120,000-sf D'Andrea Marketplace in Sparks, NV and the 49,000-sf Black Mountain Village in San Diego. Kimco paid $53.6 million including the assumption of $17.1 million in mortgage debt for the properties, where the major tenants include, Safeway, Longs Drugs, Bank of America and Starbucks.

The properties that the REIT bought via its investment venture with UBS Wealth Management total approximately 428,500 sf of space in California and 484,500 sf in Nevada. The aggregate purchase price of $289.3 million included the assumption of approximately $70.1 million of mortgage debt. Major tenants in the properties include Safeway, Bed, Bath & Beyond, Cost Plus, Borders, Raley's, Longs Drugs and Starbucks.

According to Pete Bethea of San Diego-based Burnham Real Estate's retail advisory team, which was adviser on the Kimco transaction, the centers that the REIT acquired in California are Rancho Penasquitos Towne Center I and II in San Diego, Chico-East and Esplanade in Chico, Crocker Ranch in Roseville, McQueen Crossings in Roseville, Gateway at Donner Pass in Truckee and Lincoln Town Center in Lincoln. The Nevada centers include Galena Junction and Redfield Promenade, both in Reno, plus Sparks Mercantile in Sparks.

Bethea observes that the seller of the centers, Wall Street Properties, builds its retail centers "to the highest standards," which was one of the attractions for the Kimco-UBS venture. "This acquisition demonstrates the continued trend of institutional demand for quality retail product in high barrier markets," Bethea comments.

As of March 31, the KUBS portfolio was composed of 32 operating properties aggregating approximately 5.2 million sf in 11 states. Kimco's full portfolio as of a recent filing consisted of approximately 1,365 properties comprising 175 million sf across 45 states, Puerto Rico, Canada, Mexico and Chile.