Kimco Realty Pays $322M for Orlando Shopping Center
The shopping center attracts 13.6 million people annually.
Kimco Realty has purchased an Orlando shopping center that attracts millions of people per year for $322 million.
The real estate investment trust said in a statement that the deal includes the assumption of a $164 million mortgage.
The asset, called Waterford Lakes Town Center, measures 976,000 square feet and sits on 79 acres. The West University submarket location commands an occupancy rate of about 99 percent, featuring major retailers such as Target, Panera Bread, Best Buy, Tiger Woods’ PopStroke Sephora, TJ Maxx, Ross Dress for Less, Bath & Body Works, Lululemon, Nike, Shake Shack, and Warby Parker.
The area also has strong fundamentals, as highlighted by Kimco. Within five miles is an estimated population of more than 228,000, carrying an average household income of $111,000. Plus it’s three miles away from the University of Central Florida, where roughly 70,000 students are enrolled. Waterford attracts 13.6 million visits annually, according to Kimco, citing data from Placer.ai.
“This irreplaceable property aligns perfectly with our acquisition strategy, enhances our high-quality portfolio, and strengthens our position as a premier shopping center owner in the core Orlando market,” said Ross Cooper, president and chief investment officer of Kimco.
“We are excited to leverage our extensive operating platform and deep tenant relationships to unlock the full growth potential of this dominant shopping center by recapturing below-market leases and further enhancing its already excellent merchandising mix.”
The Waterford deal brings Kimco’s acquisition total year-to-date to over $560 million. For the entire year, the company is projecting that number could go up to $625 million. Also, it provided guidance for its dispositions in an expected range of between $250 million to $300 million. That’s down from its previous forecasts of $300 million to $350 million.
In Orlando alone, the grocery and mixed-use focused REIT operated 18 centers, with an average occupancy rate of 98.2 percent, as of the second quarter. The gross leasable space in the metro area comes out to four million square feet. Across the U.S., Kimco owns 576 shopping centers, taking up 101 million SF of gross leasing space.
Also, Kimco said that there is growing demand from up-scale tenants, which leads to them paying “significantly higher rents,” helping “further enhance the merchandising mix and drive long-term rent growth” for the company.