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Kimco acquires retail portfolio in New England for $270M
Kimco Realty Corp., a real estate investment trust that primarily owns and operates suburban shopping centers, said Friday it has acquired a package of 24 retail-focused properties in the New England region for $270 million.
The portfolio includes 17 properties in the Boston metropolitan area, four additional shopping centers in Massachusetts, two centers in northern New Jersey and one property in Connecticut. The purchase also includes the assumption of $121.5 million in mortgage debt. The seller was not disclosed.
The addition will significantly expand Kimco's presence in the Boston area. Before the purchase, the New Hyde Park-based REIT owned five properties in Massachusetts, with only one in the vicinity of Boston.
"This acquisition is in line with our communicated strategy of focusing on key territories which boast solid demographics and growth potential," Kimco chief executive David Henry said in a news release.
Kimco, which owned 874 shopping centers across North and South America as of June, has been divesting noncore properties and scooping up ones in more strategic locations across the U.S. in order to return value to investors.
Earlier this year, the company said it would be exiting the South American market due to low growth potential. The REIT said last week it had sold 98 properties in Latin America and eight in the U.S., and bought two additional shopping centers in the United States, in its fiscal third quarter.