Kimco Realty acquires open-air grocery anchored portfolio in Long Island for $376m

Kimco Realty, a North American open-air and grocery-anchored shopping centers operator, has acquired an open-air grocery anchored portfolio in Long Island, New York for $375.8 million.

The acquisition is said to increase Kimco Realty’s footprint in New York’s high barrier-to-entry market.

The acquired portfolio includes eight shopping centers, namely The Gardens at Great Neck, The Market Place, Woodbury Common, Southgate Shopping Center, Stop & Shop Shopping Center, Syosset Corners, Green Cove Plaza, and Sequams Shopping Center.

According to Kimco Realty, the eight-property portfolio consists of 540,000 square feet of retail space, which increases its grocery-anchored shopping centers to 36, accounting for a total of more than 3.5 million square feet.

Conor Flynn — Kimco Realty CEO said: “This acquisition was a rare chance to expand our presence in one of Kimco’s most highly desired markets, with a portfolio of irreplaceable real estate located in one of the most heavily trafficked, densely populated, suburbs that offers high barriers to entry and affluent communities.”

“The acquisition also brings us closer to our target of 85% of the company’s annual base rent coming from grocery anchored centers.”

Kimco Realty said at the end of September 2022, the company owned 28 centers spanning a combined three million square feet with an average occupancy percentage of 97.8 in the Long Island market.

Based on the financial metrics as of 30 September 2022, Kimco Realty had cash and cash equivalents of $123.5 million on its balance sheet and then received around $301.1 million of proceeds from the divestiture of its 11.5 million shares in Albertsons.

In October 2022, Kroger and Albertsons signed a merger deal, which is expected to close in early 2024.