NY-based REIT Kimco Realty Corp. (NYSE: KIM
) executed an agreement to acquire 24 retail properties to boost its presence in New England for $270 million, including the assumption of $121.5 million of mortgage debt.
The 1.4-million-square-foot, 96-percent-occupied portfolio consists of 17 shopping centers in the Boston metropolitan market with retail anchor tenants that include Whole Foods, Trader Joe’s, Lowes, Kohl’s, Petco, Pier 1 Imports, Aldi Supermarket, CVS and Walgreens.
Four other Massachusetts shopping centers, three of which are near Cape Cod, two Kings Supermarket-anchored centers in northern New Jersey, and one Wal-Mart-anchored center in Danbury, Conn., compose the remainder of the portfolio.
The investment reflects Kimco's investment strategy of focusing on grocery, necessity-based and discount retail centers anchored by strong retail brands. Anchor tenants comprise 81 percent of the portfolio's base rents.
"This acquisition is in line with our communicated strategy of focusing on key territories which boast solid demographics and growth potential," said David Henry, Kimco’s president and CEO, adding, "The assets are largely located in the high barrier to entry Boston market with attractive infill locations and a large consumer base."
Several centers, including those situated near Boston College, Boston University, Harvard and MIT, have more than 200,000 local residents within a three-mile range. The average population of these 24 assets is 25 percent higher than Kimco’s collective retail portfolio. For those retailers that report sales, the high density surrounding of these properties has led to an average tenant sales volume of $500 per square foot.
Closing is subject to lender approvals in addition to other customary conditions, with Kimco expecting the transaction to be completed during the first quarter of 2014.
HFF, led by senior managing director Jim Koury, marketed the portfolio exclusively on behalf of the undisclosed seller.