Kimco Realty’s Strategic Move
Kimco Realty, a renowned real estate investment trust (REIT) and a prominent owner and operator of high-quality shopping centers in the United States, has recently made a significant expansion in its Florida presence. This strategic move involves the acquisition of The Markets at Town Center, an esteemed 254,000-square-foot asset located in Jacksonville, Florida. The acquisition was valued at $108 million, marking a pivotal moment for Kimco as it is the first property acquired through its innovative Structured Investment Program.
Structured Investment Program
Kimco’s Structured Investment Program is designed to deploy mezzanine financing strategically while securing rights of first refusal or offer on portfolio-enhancing assets. Prior to acquiring The Markets at Town Center, Kimco provided $15 million in mezzanine financing for the property which was repaid upon closing. This unique program sets Kimco apart by offering above-average returns and potential equity ownership transition of high-quality properties.
About The Markets at Town Center
Strategically positioned adjacent to St. Johns Town Center, one of Jacksonville’s premier lifestyle centers, The Markets at Town Center enjoys a prime location in North Florida’s sought-after shopping district. With an affluent customer base boasting an estimated population of 192,000 and an average household income of $95,000 within a five-mile radius, the property attracts over four million annual visits. Boasting a 97% occupancy rate, the center features top tenants such as Sprouts Farmers Market, Ulta Beauty, Costco Wholesale, Cooper’s Hawk Winery & Restaurant, and many more.
Expansion Impact
The acquisition not only consolidates Kimco’s footprint in Jacksonville but also aligns with its commitment to owning high-quality properties with significant growth potential. With several below-market leases set to expire in upcoming years at The Markets at Town Center, there are substantial opportunities for mark-to-market enhancement.
About Kimco Realty®
Kimco Realty is focused on owning and operating open-air shopping centers primarily concentrated in major metropolitan markets across the United States. Specializing in necessity-based goods and services that drive frequent consumer visits weekly; the company has been involved in shopping center ownership for over six decades.
Future Prospects
Looking ahead, Kimco plans to leverage its Structured Investment Program further to acquire valuable assets that align with its strategic vision while enhancing shareholder value through prudent investments and operational excellence.
In conclusion, Kimco Realty’s recent expansion through the acquisition of The Markets at Town Center underscores its commitment to growth and innovation within the real estate industry.
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