Company significantly expands in the Boston metropolitan market
NEW HYDE PARK, N.Y., 2014-5-1 — /EPR Retail News/ — Kimco Realty Corp. (NYSE:KIM), North America’s largest publicly traded owner and operator of neighborhood and community shopping centers, today announced that it has completed the purchase of a 24-property retail portfolio in New England for $270 million, including the assumption of $120.5 million of mortgage debt. The purchase is part of the company’s strategy to transform its portfolio through the acquisition of high-quality centers in key territories with strong demographics and growth potential, and to create value through select asset redevelopment and repositioning.
The 1.4-million-square-foot, 96-percent-occupied portfolio includes 17 shopping centers in the Boston metropolitan area, marking a significant expansion for the company in this desirable retail market with attractive infill locations and a large consumer base. Several centers have more than 200,000 local residents within a three-mile radius, including those strategically located near Boston College, Boston University, Harvard and MIT. The portfolio also includes four other Massachusetts shopping centers, three of which are near Cape Cod, two grocery-anchored centers in northern New Jersey near New York City, and one Wal-Mart-anchored center in Danbury, Connecticut.
The tenant mix in the newly acquired portfolio is aligned with Kimco’s focus on grocery, necessity-based and discount retailers. The centers are anchored by investment-grade chains such as Whole Foods, Trader Joe’s, Lowe’s, CVS and Walgreens, with anchor tenants comprising 81 percent of the portfolio’s base rent. The average population within a three-mile radius of these assets is over 25 percent higher than that of Kimco’s collective retail portfolio, leading to strong sales volumes.
With average rents in the portfolio significantly below market, Kimco sees the potential for substantial income growth over the next 10 years through in-place rent increases and lease roll-over.
Furthermore, the well-located, mature assets in the portfolio offer a multitude of opportunities for redevelopment, repositioning and re-tenanting over the mid- to long-term, with several sites containing undeveloped outparcels that make expansion an appealing possibility.
Kimco Realty Corp. (NYSE: KIM) is a real estate investment trust (REIT) headquartered in New Hyde Park, New York, that owns and operates North America’s largest publicly traded portfolio of neighborhood and community shopping centers. As of December 31, 2013, the company owned interests in 852 shopping centers comprising 125 million square feet of leasable space across 44 states, Puerto Rico, Canada, Mexico and South America. Publicly traded on the NYSE since 1991, and included in the S&P 500 Index, the company has specialized in shopping center acquisitions, development and management for more than 50 years. For further information, please visit www.kimcorealty.com, the company’s blog at blog.kimcorealty.com, or follow Kimco on Twitter at www.twitter.com/kimcorealty.
David F. Bujnicki
Vice President, Investor Relations and Corporate Communications
Kimco Realty Corp.