JERICHO, NY – Kimco Realty (NYSE: KIM), a Jericho-based commercial and mixed-use real estate REIT, has acquired a portfolio of eight shopping centers on Long Island. Kabro Associates, a private owner based in Woodbury, NY, sold the portfolio to Kimco for $375.8 million.
Each of the eight retail centers, five of which are grocery stores, are located within a 15-minute drive of Kimco’s headquarters in Jericho. Centers of the sold portfolio include:
• Great Neck Gardens
• Town of Woodbury
• The marketplace
• Stop & Shop Shopping Center
• Southgate Shopping Center
• Green cove square
• Syosset corners and
• Sequams Shopping Center
The portfolio was 94.4% leased at the time of the sale. Center tenants include TJ Maxx, GoHealth Urgent Care, Rite Aid, Starbucks, Dunkin’ and Chipotle Mexican Grill, among others.
“This acquisition was a rare chance to expand our presence in one of Kimco’s most desirable markets, with an irreplaceable portfolio of real estate located in one of the busiest and most densely populated suburbs that offers high barriers to entry and affluent communities,” said Conor Flynn, CEO of Kimco. “The acquisition also brings us closer to our goal of 85% of the company’s annual base rent coming from centers rooted in grocery.”
Kabro Associates has owned the eight retail centers for decades and is reducing its retail holdings, according to local media.
Kimco financed the acquisition with a combination of cash and redeemable stock units, as well as assuming $88.8 million in debt. The company realized $301.1 million in proceeds from the sale of Albertsons stock following the grocer’s merger with Kroger.
At the end of the third quarter, Kimco Realty had 28 centers on Long Island totaling 3 million square feet, with an average occupancy rate of 97.8%. The addition of this eight-property portfolio, which includes 540,000 square feet of retail space, will bring the company’s Long Island portfolio to 36 assets totaling more than 3.5 million square feet.
Nationally, Kimco Realty had 526 centers covering 91 million square feet at the end of the third quarter. The company’s stock price closed Thursday, Nov. 10, at $22.31 per share, down slightly from $23.80 a year ago.
— John Nelson