Kimco Realty Acquires Premier Grocery-Anchored Shopping Center
In a strategic move to enhance its portfolio, Kimco Realty® (NYSE: KIM) has acquired The Markets at Town Center, a prime grocery-anchored shopping center located in Jacksonville, Florida, for $108 million. This acquisition is notable as it marks the inaugural transaction under Kimco’s Structured Investment Program, which aims to utilize mezzanine financing effectively while obtaining rights for potential equity ownership in high-value properties.
Key Details of the Acquisition
- Size: The Markets at Town Center spans 254,000 square feet.
- Occupancy Rate: The property boasts an impressive occupancy of 97%.
- Demographics: The center benefits from a robust local customer base, with approximately 192,000 residents and an average household income of $95,000 within a five-mile radius.
- Traffic: With over four million annual visits, the center features several national tenants that are key traffic drivers in the region.
Strategic Insight
Ross Cooper, Kimco’s President and Chief Investment Officer, expressed enthusiasm about the acquisition, stating, “This unique and strategic program is a true differentiator for the company, enabling above-average returns while providing the potential to transition into equity ownership of high-quality properties.”
Notable Tenants Include:
- Sprouts Farmers Market (anchor tenant)
- Costco Wholesale (shadow anchor)
- Ulta Beauty
- Cooper’s Hawk Winery & Restaurant
- Five Below
- REI
- J.Crew
- Nordstrom Rack
- Chipotle Mexican Grill
These retailers offer a balanced mix of grocery, lifestyle, and dining options that cater to local needs, making it an attractive shopping destination.
Location Advantages
The Markets at Town Center is situated in North Florida’s most desirable shopping area, adjacent to the St. Johns Town Center, a leading lifestyle hub in Jacksonville. The strategic location enhances its visibility and accessibility, making it a pivotal part of the community’s retail landscape.
Expansion Plans
With this latest acquisition, Kimco Realty now has a total of six properties in the Jacksonville market, covering nearly 1.5 million square feet with an occupancy rate of 98.6%. This strategic growth underscores Kimco’s commitment to expanding its footprint in prime retail locations across the United States.
About Kimco Realty
Founded in 1991, Kimco Realty® is a prominent real estate investment trust (REIT) specializing in the ownership and management of high-quality, open-air, grocery-anchored shopping centers. The company’s portfolio focuses on major metropolitan markets with high barriers to entry and rapidly growing Sun Belt cities. As of the end of September 2024, Kimco Realty manages 567 shopping centers and mixed-use properties, totaling 101 million square feet of gross leasable space.
Conclusion
Kimco Realty’s acquisition of The Markets at Town Center exemplifies its effective application of innovative investment strategies while reinforcing its position as a leader in the grocery-anchored retail space. The strong demographics and tenant mix ensure that this property will be a valuable addition to their already impressive portfolio.
For more information about Kimco Realty and its latest investment strategies, visit their official investor relations website.
Important Notice
This announcement may contain forward-looking statements that reflect Kimco’s current expectations and projections. These statements are subject to various risks, and actual results may differ significantly. For further details, refer to the company’s recent SEC filings.