Kimco Realty Corporation
) disclosed the buyout of a fully occupied grocery-anchored
portfolio in Clark, a densely populated suburb of New York City
in Union County, N.J. With this $35.6 million acquisition, the
company expanded its New York City metropolitan statistical area
(MSA) retail centers portfolio to 73 assets that stretches around
7.8 million square feet of gross leasable space.
The acquired portfolio includes three properties and spans a
total of 189,000 square feet. It includes 2 long-term ground
leases to U.S.-based grocers - ShopRite (85,000 square feet) and
A&P Fresh Market (53,000 square feet). The other U.S. tenants
at the property include Bally Total Fitness and
Rite Aid Corporation
We believe that the portfolio's premium location is one of the
driving factors behind its acquisition by this retail real estate
investment trust (REIT). The area has a prosperous residential
community with a median household income of $90,000 within three
miles, which is about 25% higher than Kimco's U.S. portfolio
median income levels. Also, Clark, N.J. area has high retail
occupancy levels, with shopping centers experiencing an average
traffic count of 200,000 vehicles on a daily basis.
Notably, the acquired portfolio is situated within 20 miles of
17 other Kimco properties in this area. The high-end assets
acquisition in the New York City MSA is in line with Kimco's
ongoing portfolio enhancement activity and is expected to boosts
its earnings in the coming quarters.
Kimco currently carries a Zacks Rank #3 (Hold). Better placed
REITs in Equity Trust - Retail include
Regency Centers Corporation
Simon Property Group Inc.
). All these stocks carry a Zacks Rank #2 (Buy).
KIMCO REALTY CO (KIM): Free Stock Analysis
RITE AID CORP (RAD): Free Stock Analysis
REGENCY CTRS CP (REG): Free Stock Analysis
SIMON PROPERTY (SPG): Free Stock Analysis
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