NEW HYDE PARK, N.Y.--(BUSINESS WIRE)--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.
