NEW HYDE PARK, N.Y. — A subsidiary of Kimco Realty Corp. (NYSE: KIM) has executed a contract to acquire the remaining 66.7 percent interest in the 39-property “Kimstone” portfolio from its joint venture partner, a subsidiary of Blackstone Real Estate Partners VII (BREP). The deal is valued at $925 million, which includes the assumption of approximately $426.7 million in mortgage debt.
Kimco will pay approximately $512.3 million to acquire BREP’s interest using a combination of proceeds from recently completed and pending property sales in the U.S. and Latin America, as well as availability under its existing $1.75 billion revolving credit facility. Upon closing, which is expected in the first quarter of 2015, Kimco will own 100 percent of the portfolio.
The 5.6 million-square-foot portfolio is approximately 97 percent occupied and comprises grocery-anchored shopping centers and power centers. The properties in the portfolio are concentrated in the core markets of New York, Virginia, Texas, Florida, California and Maryland.
The portfolio includes four signature assets:
• 280 Metro Center, a 228,000-square-foot property located in the San Francisco Bay Area of Colma, Calif. The 95-percent-occupied center is supported by a well-known list of anchors that includes Nordstrom Rack, Marshalls, Bed Bath & Beyond and several others.
• Airport Plaza, a 437,000-square-foot power center in the Long Island community of Farmingdale, N.Y. The 97 percent-occupied center features an anchor roster that includes The Home Depot, PetSmart, Bed Bath & Beyond, and TJ Maxx. The property will soon be redeveloped to include a highly regarded regional grocer.
• Dulles Town Crossing, a 799,000-square-foot, fully occupied power center located in Sterling, Va., and anchored by Walmart, Lowes Home Center, Sam’s Club, Nordstrom Rack, Bed Bath & Beyond, TJ Maxx, Best Buy and Cost Plus.
• Stafford Marketplace, a 331,000-square-foot, fully occupied grocery-anchored shopping center located in Stafford, Va. and anchored by Shoppers Food, Ross Dress for Less, TJ Maxx, Michaels, Bed Bath & Beyond and PetSmart.
— John Nelson