Kimco, Blackstone Acquire Publix-Anchored Portfolio in $426M Deal

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Kimco Realty Corp. paid $425.8 million for six shopping centers anchored by Publix Super Markets, including five properties in South Florida and one in Atlanta, the company announced.

After the transaction, Kimco (NYSE: KIM), a real estate investment trust headquartered in Jericho, N.Y., entered into a 50-50 joint venture with Blackstone Real Estate Income Trust.

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Kimco was both buyer and seller in this transaction, since the investment firm acquired a 30 percent interest in the portfolio earlier this year, when it bought Weingarten Realty, another real estate investment trust  that owns grocery-anchored shopping centers. 

The deal underscores both Kimco’s and Blackstone’s interest in grocery-anchored centers, as well as the dominance of Publix Super Markets in Florida. The properties themselves represented “a generational opportunity,” said Danny Finkle, senior managing director of capital markets at  JLL, part of the team that marketed the properties and procured the buyer.

“A collection of grocery-anchored assets of this scale and quality has not been offered in South Florida in more than 15 years,” Finkle said in a statement.

The five South Florida properties in the deal include 1.3 million square feet of space. They are:

  • Hollywood Hills Plaza I and II at 3251 Hollywood Boulevard in Hollywood. The 416,769-square-foot center also leases space to Target and Chewy.com, according to the latest annual report from Weingarten Realty.
  • Pembroke Commons, a 323,382-square-foot property at 600 North University Drive in Pembroke Pines. Tenants include Ross Dress for Less, LA Fitness, Marshalls and Dollar Tree.
  • Northridge Shopping Center at 1002 East Commercial Boulevard in Oakland Park. Tenants at the 237,703-square-foot center include Petco, Ross Dress for Less and Dollar Tree.
  • Flamingo Pines Shopping Center, a 153,641-square-foot plaza at 12550 Pines Boulevard in Pembroke Pines.
  • Tamiami Trail Shops at 13850 Southwest 8th Street in Miami. CVS also is a tenant in the 132,647-square-foot plaza.

Neither Kimco nor JLL divulged details about how the purchase price was divided among the six properties.

Jeff Ostrowski can be reached at jostrowski@commercialobserver.com.