Jericho, N.Y. — Kimco Realty (NYSE: KIM), a retail and mixed-use real estate REIT based in Jericho, has acquired a portfolio of eight shopping centers on Long Island. Kabro Associates, a privately held owner based in Woodbury, N.Y., sold the portfolio to Kimco for $375.8 million.
Each of the eight retail centers, five of which are grocery-anchored, are located within a 15-minute drive of the Kimco corporate headquarters in Jericho. The centers in the sold portfolio include:
• The Gardens at Great Neck
• Woodbury Common
• The Market Place
• Stop & Shop Shopping Center
• Southgate Shopping Center
• Green Cove Plaza
• Syosset Corners and
• Sequams Shopping Center
The portfolio was 94.4 percent leased at the time of sale. Tenants at the centers include TJ Maxx, GoHealth Urgent Care, Rite Aid, Starbucks, Dunkin’ and Chipotle Mexican Grill, among others. Jose Cruz, Christopher Munley, Andrew Scandalios, James Galbally, Steve Simonelli, Colin Behr and J.B. Bruno of JLL represented Kabro Associates in the transaction.
“This acquisition was a rare chance to expand our presence in one of Kimco’s most highly desired markets, with a portfolio of irreplaceable real estate located in one of the most heavily trafficked, densely populated, suburbs that offers high barriers to entry and affluent communities,” says Conor Flynn, CEO of Kimco. “The acquisition also brings us closer to our target of 85 percent of the company’s annual base rent coming from grocery-anchored centers.”
Kabro Associates has owned the eight retail centers for decades and is winding down its retail holdings, according to local media outlets.
Kimco funded the acquisition with a combination of cash and redeemable stock units, as well as the assumption of $88.8 million of debt. The company had $301.1 million in proceeds from its sale of Albertsons stock following the grocer’s merger with Kroger.
At the end of the third quarter, Kimco Realty owned 28 Long Island centers totaling 3 million square feet, with an average occupancy rate of 97.8 percent. The addition of this eight-property portfolio, which comprises 540,000 square feet of retail space, will increase the firm’s Long Island portfolio to 36 assets totaling over 3.5 million square feet.
Nationally, Kimco Realty owned 526 centers spanning 91 million square feet at the conclusion of the third quarter. The company’s stock price closed on Thursday, Nov. 10 at $22.31 per share, down slightly from $23.80 a year ago.
— John Nelson and Hayden Spiess