Kimco Realty’s Acquisition of Waterford Lakes Town Center
Acquisition Details
Kimco Realty, a well-known real estate investment trust (REIT), has significantly bolstered its portfolio with the acquisition of Waterford Lakes Town Center in Orlando, Florida. The transaction was completed for a total of $322 million, which includes taking on a $164 million mortgage.
Property Overview
Waterford Lakes Town Center is a sprawling commercial hub covering 976,000 square feet of retail space spread over 79 acres. The center boasts an impressive occupancy rate of approximately 99%, making it an attractive investment. Strategically located in the affluent West University area of Orlando, the center is just three miles from the University of Central Florida, which has a student body exceeding 70,000, providing a steady flow of potential consumers.
Demographics and Traffic
The shopping center enjoys a robust demographic profile, serving a vast trade area that encompasses a population of over 228,000 with an average household income of $111,000 within a one-mile radius. Being part of one of the nation’s fastest-growing metropolitan regions, Waterford Lakes Town Center attracts about 13.6 million visits annually, making it one of Florida’s busiest retail destinations.
Tenant Mix
The center showcases a dynamic tenant mix, anchored by major retailers such as Super Target, TJ Maxx, Ross Dress for Less, Panera Bread, and Bath & Body Works. The presence of new tenants like Lululemon, Nike, Shake Shack, Warby Parker, Sephora, and Tiger’s PopStroke underscores the strong demand for retail space in this area.
Market Potential
The acquisition offers significant potential for market optimization as several original anchor tenant leases, currently below market rates, are due to expire soon. This scenario presents an opportunity for Kimco to enhance its merchandising mix and capitalize on long-term rental growth by realigning leases to current market standards.
Strategic Alignment
This acquisition is in perfect alignment with Kimco’s strategic goals, enhancing the company’s portfolio quality and reinforcing its status as a leading shopping center owner in the core Orlando region.
Impact on Kimco’s Portfolio
With the addition of Waterford Lakes Town Center, Kimco Realty’s presence in the Orlando market expands to 18 centers, comprising a total of four million square feet of leasable space. As of the end of the second quarter, Kimco’s properties boast an average occupancy rate exceeding 92%, underscoring the health and attractiveness of its portfolio.
Company Overview
Kimco Realty stands as a premier owner and operator of high-quality, open-air, grocery-anchored retail centers and mixed-use properties across the United States. As a publicly traded company on the New York Stock Exchange, Kimco is a constituent of the S&P 500 Index, reflecting its solid position within the real estate sector.
