NEW HYDE PARK, NY-Locally based Kimco Realty Corp. has formed a joint venture with Israeli owner/developer BIG Shopping Centers to acquire neighborhood and community shopping centers throughout the US. The initial $68.8-million investment marks BIG’s entry into the US retail market.
Kimco and BIG’s JV is being 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.
BIG has acquired a 49.9% interest in the venture, while Kimco will retain a 50.1% interest in addition to acting as the operating partner, according to a release. Kimco had bought both properties as part of its $825-million acquisition of the former PL portfolio from a fund managed by DRA Advisors this past November.
As the operating partner, Kimco will manage the properties and earn asset management, property management and other customary fees, the release states. The two companies intend to grow their JV over time through the acquisition of additional retail properties or portfolios.
Last month, Kimco and the Canada Pension Plan Investment Board announced a $370-million JV on five other former PL properties. They included a trio of shopping centers in the San Diego area, along with Pentagon Centre in Arlington, VA and Oakwood Plaza in Hollywood, FL, the largest of the five at 871,723 square feet. When that JV was announced, Kimco CEO David Henry cited the “outstanding track record” of the pension fund.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
