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.
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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.
