Kimco JV Buys $422M Retail Portfolio

NEW HYDE PARK, NY-In its second transaction with BIG Shopping Centers since partnering with the Israel-based company a month ago, Kimco Realty Corp. says it has entered a $422-million joint venture to buy 15 retail centers in five states. The deal includes the assumption of $385 million in mortgage debt.

Kimco currently owns the properties in a previous JV with an institutional investor. Under the new venture, BIG will hold a 49.9% interest and Kimco will hold a 33.3% interest, with the remainder held by a consortium of other investors. Kimco will serve as the operating partner and provide leasing and property management services on the portfolio.

The 2.6-million-square-foot portfolio of neighborhood and community shopping centers includes nine properties in California, two each in Nevada and Washington State and one each in Oregon and Maryland. With an 89.5% occupancy rate across the portfolio, anchor tenants include Wal-Mart, Target, TJ Maxx, CVS Pharmacy, Ross Dress for Less and Albertsons. The deal is expected to close at the end of this month.

David Henry, Kimco’s president and CEO, says in a statement that his company is  “thrilled that BIG considers Kimco a key partner in its US expansion plans. We expect this relationship to flourish and take advantage of additional acquisition opportunities that arise in the future.”

In mid-May, Kimco and BIG announced a JV to to acquire neighborhood and community shopping centers throughout the US. The initial $68.8-million investment marked BIG’s entry into the US retail market.

The JV was launched with a pair of California retail assets which Kimco bought late last year: Town Center East in the Long Beach suburb of Signal Hill and Stanford Ranch Crossing in Roseville, a suburb of Sacramento. Both former PL Retail properties, the two centers total 343,000 square feet, with anchor tenants including Home Depot, PetSmart, Staples, Ross Dress for Less and Sports Authority.