Kimco Realty Acquires Jantzen Beach Center, a Rare Opportunity in a High-Barrier-to-Entry Market
July 10 2017 - 4:01PM
Business Wire
– Provides Second Quarter 2017 Transaction
Activity –
Kimco Realty Corp. (NYSE:KIM) today announced the post-second
quarter acquisition of Jantzen Beach, a 96%-occupied,
746,000-square-foot, open-air shopping center on 67 acres in
Portland, Oregon, for $131.8 million, or $177/square foot,
substantially below replacement cost. Jantzen Beach is the
company’s eighth property in the Portland-Vancouver-Hillsboro MSA,
expanding Kimco’s concentration in a top 25 market where it also
maintains a regional office.
“Jantzen Beach is a flagship asset located in a coastal,
in-demand market with significant barriers to entry,” said Ross
Cooper, President and Chief Investment Officer of Kimco Realty.
“This asset exemplifies a key component of our strategic 2020
Vision to upgrade the quality of our portfolio with selective
acquisitions funded by disposition proceeds.”
The center features a prime collection of national tenants in
today’s strongest retail categories, including Home Depot, Target,
TJ Maxx, HomeGoods, Ross Stores, Burlington, Petco, Best Buy, DSW
and Michaels. Jantzen Beach sits along Portland’s busy I-5 artery,
with traffic counts of over 128,000 cars per day. As one of the
only major shopping centers in the region, the center’s trade area
extends over 10 miles, reaching into neighboring Washington State,
and its sales tax-free shopping attracts approximately five million
visits per year. Furthermore, Jantzen Beach is located within the
Urban Growth Boundary of Portland, which serves to control urban
expansion and poses a formidable barrier to entry in this desirable
market.
The Jantzen Beach acquisition will expand the company’s future
redevelopment pipeline through potential outparcel development of
two 6,000-square-foot pad buildings, and mixed-use densification
opportunities supported by flexible zoning. The center also offers
strong mark-to-market upside from several below-market anchor
leases.
Kimco also reported its transaction activity for the second
quarter of 2017:
Acquisitions: The company acquired
a parcel adjacent to its Augusta Exchange shopping center in
Augusta, Georgia, for a gross purchase price of $700,000. The land
acquisition is an excellent redevelopment opportunity for an
outparcel that will complement the existing tenant mix. Kimco’s
share of the purchase price was $340,000.
Dispositions: Kimco disposed of
interests in nine shopping centers, totaling 892,000 square feet,
and two land parcels for a gross sales price of $155.8 million.
Kimco’s share of the sales price was $128.1 million. With these
dispositions, the company has exited the states of Maine and
Louisiana.
ABOUT KIMCO
Kimco Realty Corp. (NYSE: KIM) is a real estate investment trust
(REIT) headquartered in New Hyde Park, N.Y., that is one of North
America’s largest publicly traded owners and operators of open-air
shopping centers. As of June 30, 2017, the company owned interests
in 510 U.S. shopping centers comprising 84 million square feet of
leasable space across 32 states and Puerto Rico. Publicly traded on
the NYSE since 1991, and included in the S&P 500 Index, the
company has specialized in shopping center acquisitions,
development and management for more than 50 years. For further
information, please visit www.kimcorealty.com, the company’s blog
at blog.kimcorealty.com, or follow Kimco on Twitter at
www.twitter.com/kimcorealty.
SAFE HARBOR STATEMENT
The statements in this news release state the company’s and
management’s intentions, beliefs, expectations or projections of
the future and are forward-looking statements. It is important to
note that the company’s actual results could differ materially from
those projected in such forward-looking statements. Factors which
may cause actual results to differ materially from current
expectations include, but are not limited to, (i) general adverse
economic and local real estate conditions, (ii) the inability of
major tenants to continue paying their rent obligations due to
bankruptcy, insolvency or a general downturn in their business,
(iii) financing risks, such as the inability to obtain equity, debt
or other sources of financing or refinancing on favorable terms to
the company, (iv) the company’s ability to raise capital by selling
its assets, (v) changes in governmental laws and regulations, (vi)
the level and volatility of interest rates and foreign currency
exchange rates and management’s ability to estimate the impact
thereof, (vii) risks related to the company’s international
operations, (viii) the availability of suitable acquisition,
disposition, development and redevelopment opportunities, and risks
related to acquisitions not performing in accordance with our
expectations, (ix) valuation and risks related to the company’s
joint venture and preferred equity investments, (x) valuation of
marketable securities and other investments, (xi) increases in
operating costs, (xii) changes in the dividend policy for the
company’s common stock, (xiii) the reduction in the company’s
income in the event of multiple lease terminations by tenants or a
failure by multiple tenants to occupy their premises in a shopping
center, (xiv) impairment charges and (xv) unanticipated changes in
the company’s intention or ability to prepay certain debt prior to
maturity and/or hold certain securities until maturity. Additional
information concerning factors that could cause actual results to
differ materially from those forward-looking statements is
contained from time to time in the company’s SEC filings. Copies of
each filing may be obtained from the company or the SEC.
The company refers you to the documents filed by the company
from time to time with the SEC, specifically the section titled
“Risk Factors” in the company’s Annual Report on Form 10-K for the
year ended December 31, 2016, as may be updated or supplemented in
the company’s Quarterly Reports on Form 10-Q and the company’s
other filings with the SEC, which discuss these and other factors
that could adversely affect the company’s results. The company
disclaims any intention or obligation to update the forward-looking
statements, whether as a result of new information, future events
or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20170710006327/en/
Kimco Realty Corp.David F. Bujnicki, 1-866-831-4297Senior Vice
President, Investor Relations and
Strategydbujnicki@kimcorealty.com
Kimco Realty (NYSE:KIM)
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