(For more retail coverage, click GlobeSt.com/RETAIL.)
FARMINGDALE, NY-KRC Acquisition Inc. acquired Airport Plaza here for an aggregate price of approximately $95 million. KRC was acting on behalf of a joint venture between an affiliate of New Hyde Park-based Kimco Realty Corp. and investment fund managed by a major investment bank. Republic Thunderbolt LLC, an indirect, wholly owned subsidiary of McLean, VA-headquartered Fairchild Corp., was the seller. Tenants include Borders and Jillian's.
The net purchase price is approximately $41.1 million, plus certain increases in the purchase price in the event the closing takes place after Feb. 11. As a condition to closing, KRC will either assume or defease the existing mortgage loan on Airport Plaza. The outstanding principal balance on the mortgage loan is approximately $53.8 million. KRC has placed a deposit in the amount of $4.75 million.
The sale does not include several other undeveloped parcels of real estate the company owns in the town, the largest of which is under contract of sale to the market chain, Stew Leonards. Fairchild decided to sell the shopping center to enhance its financial flexibility, allowing it to invest in existing operations or pursue other opportunities. Jeffrey Steiner, the company's chairman and CEO says the center was built on the site where Republic Aviation and later Fairchild Industries constructed military aircraft. "By the mid-90s, those factories were an abandoned and decaying eye sore. It was our vision to change that and contribute to the economic well being and growth of Central Long Island, and in particular, the Town of Babylon. This power center, which we are now selling for $95 million, is a testament to our vision."
The closing is expected to take place between Feb. 11 and June 15. In July Kimco reportedly had more than $200 million in shopping center acquisitions pending across the country, as well as a $711-million development pipeline of 24 centers and $270 million in redevelopments on tap. Earlier this year, Kimco and Atlantic Realty Trust inked a definitive merger agreement. Kimco will acquire Atlantic Realty for $82.5 million plus the amount of Atlantic Realty's cash on hand at closing. Kimco has interests in over 946 properties in 43 states, Canada and Mexico, with more than 127 million sf of leaseable space. The REIT invested more than $1 billion to acquire new properties for the core portfolio during the last year
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