In a significant move to strengthen its foothold in the vibrant Florida market, Kimco Realty has made waves with the recent acquisition of The Markets at Town Center. This premier asset, spanning 254,000 square feet in Jacksonville, was procured for $108 million. Noteworthy is that this acquisition represents Kimco’s inaugural property acquired through its innovative Structured Investment Program.
The Structured Investment Program devised by Kimco aims to judiciously deploy mezzanine financing while ensuring rights of first refusal or offer on assets that enhance its portfolio. Prior to the acquisition, Kimco had provided $15 million in mezzanine financing for The Markets at Town Center, which was repaid upon closure of the deal.
Ross Cooper, President and Chief Investment Officer of Kimco Realty, expressed enthusiasm about this milestone achievement through the Structured Investment Program. He emphasized how this unique initiative sets Kimco apart by not only offering attractive returns but also opening avenues for transitioning into equity ownership of premium properties. The company looks forward to leveraging this program further to acquire valuable assets and unleash their full potential via its robust operating platform.
Situated in North Florida’s coveted shopping district adjacent to St. Johns Town Center – Jacksonville’s premier lifestyle hub – The Markets at Town Center enjoys a prime location. Boasting an affluent customer base estimated at 192,000 individuals with an average household income of $95,000 within a five-mile radius, this property attracts over four million visitors annually. Several national tenants at the center are top traffic generators for their respective chains in Florida according to Placer.ai.
The occupancy rate stands strong at 97%, offering a diverse tenant mix encompassing grocery stores, lifestyle brands, dining options, essential goods providers, and services. Sprouts Farmers Market serves as the anchor tenant while Costco Wholesale shadows it. Other prominent tenants include Ulta Beauty, Cooper’s Hawk Winery & Restaurant, Five Below, REI, J.Crew, Ballard Designs, Nordstrom Rack, DXL Big & Tall Gen Korean BBQ and Chipotle Mexican Grill.
Constructed in 2008, The Markets at Town Center presents ample mark-to-market opportunities due to existing below-market leases set to expire in the coming years. With this acquisition adding to Kimco’s presence in Jacksonville – comprising six properties totaling around 1.5 million square feet with an impressive occupancy rate of 98.6% as of December 31st last year – the real estate giant continues its strategic expansion endeavors.
Kimco Realty®, listed on NYSE under KIM symbol since 1991 and part of S&P 500 Index prides itself as a leading owner and operator of high-quality open-air shopping centers across the US focused on essential goods and services driving frequent shopping trips per week.
With interests in over 567 U.S.-based shopping centers and mixed-use assets covering approximately 101 million square feet gross leasable space as of September 30th last year; Kimco Realty® remains committed to value-enhancing redevelopment activities bolstered by corporate responsibility initiatives that position it as an industry leader.
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David F Bujnicki
Senior Vice President Investor Relations & Strategy
Kimcorealty Corporation
Contact: [email protected]
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