Acquisition Details
Kimco Realty has acquired Waterford Lakes Town Center in Orlando, Florida, for a substantive $322 million. This figure includes the assumption of a $164 million mortgage. This strategic move underscores Kimco Realty’s commitment to expanding its portfolio with high-quality retail properties.
Property Description
The newly acquired property spans an impressive 79 acres and boasts 976,000 square feet of retail space. The center enjoys a nearly full occupancy rate, with approximately 99% of the retail space currently occupied. This high occupancy rate highlights the property’s desirability and robust market position.
Location and Demographics
Waterford Lakes Town Center is strategically situated in Orlando’s upscale West University submarket, just three miles south of the University of Central Florida. This proximity to a major university — which has a student population of about 70,000 — significantly enhances its foot traffic. The surrounding area boasts a population of over 228,000 people with an average household income of $111,000 within a five-mile radius, indicating a prosperous and densely populated primary trade area.
Tenant Mix and Traffic
The shopping center features a well-rounded tenant mix that offers a blend of lifestyle, entertainment, and essential services. Notable tenants include Super Target, TJ Maxx, Ross Dress for Less, Best Buy, Panera Bread, Bath & Body Works, Lululemon, Nike, Shake Shack, Warby Parker, Sephora, and Tiger Woods’ PopStroke. These high-caliber tenants help the center attract nearly 14 million annual visits, underscoring its role as a key consumer destination.
Market Significance
This acquisition significantly strengthens Kimco Realty’s presence in the rapidly growing Orlando market, which is one of the fastest-growing metro areas in the United States. Waterford Lakes Town Center is considered one of Florida’s top retail destinations, making this acquisition particularly noteworthy for expanding Kimco’s market footprint.
Growth Opportunities
Waterford Lakes Town Center presents substantial growth opportunities, particularly through mark-to-market leases, as several original anchors have below-market in-place leases. The increasing demand from high-end shop tenants, who are willing to pay higher rents, offers further potential to enhance the merchandising mix and drive long-term rent growth. This dynamic fosters an attractive investment profile for Kimco Realty.
Impact on Kimco Realty
With this acquisition, Kimco Realty’s total acquisition activity, including structured investments, has surpassed $560 million for the year. The company now expects to be a net acquirer in 2024 and has adjusted its guidance for total acquisitions and structured investments accordingly. This strategic acquisition aligns with Kimco’s broader growth strategy and strengthens its position in the high-growth retail market.
Company Overview
Kimco Realty is a real estate investment trust (REIT) renowned as a leading owner and operator of high-quality, open-air, grocery-anchored shopping centers and mixed-use properties in the United States. Kimco Realty will provide a full update to its 2024 guidance when it reports its third-quarter earnings on October 31.
