Kimco Raises New England Profile with $270M Deal

NEW HYDE PARK, NY-Although it has been more than a seller than buyer of late, Kimco Realty Corp. on Friday announced a major acquisition: a 24-property retail portfolio that greatly expands its New England presence. The seller in the $270-million deal, which was brokered by an HFF team led by managing director Jim Koury, was not identified. Kimco is assuming $121.5 million of mortgage debt as part of the deal.

“This acquisition is in line with our communicated strategy of focusing on key territories which boast solid demographics and growth potential,” says David Henry, Kimco's president and CEO. “The assets are largely located in the high barrier to entry Boston market with attractive infill locations and a large consumer base.”

Seventeen of the properties are located in the Boston metropolitan area, where the shopping center REIT at present has only five centers. Anchor tenants include Whole Foods, Trader Joe's, Lowes, Kohl's, Petco, Pier 1 Imports, Aldi Supermarket, CVS and Walgreens.

In addition, the portfolio includes four other Massachusetts shopping centers, three of which are near Cape Cod; a pair of high-volume Kings Supermarket-anchored centers in New York City's northern New Jersey suburbs; and a WalMart anchored center in Danbury, CT. The acquisition will quadruple Kimnco's holdings in the Bay State.

At a total of 1.4 million square feet, the portfolio is 96% occupied. Anchor tenants comprise 81% of base rents, according to Kimco.

Several centers in the portfolio have more than 200,000 local residents within a three-mile range, making the average population of the assets 25% higher than Kimco's collective retail portfolio. Thanks to the high density of the trading areas, sales volumes have averaged $500 per-square-foot for those retailers that report sales.