Kimco Realty Expands Florida Presence with Acquisition of The Markets at Town Center

Kimco Realty (NYSE: KIM), a leading owner and operator of high-quality, open-air, grocery-anchored shopping centers and mixed-use properties in the United States, has expanded its presence in the Florida market with the acquisition of The Markets at Town Center. The $108 million acquisition marks the first property Kimco has acquired through its Structured Investment Program, which strategically deploys mezzanine financing while securing rights of first refusal or rights of first offer on portfolio-enhancing assets.

The Markets at Town Center, a 254,000-square-foot premier asset in Jacksonville, Florida, is located in North Florida's most sought-after shopping district and adjacent to St. Johns Town Center, the premier lifestyle center in Jacksonville. The property benefits from an affluent customer base with an estimated population of 192,000 and an average household income of $95,000 within a five-mile radius, driving over four million annual visits to the center. Several national tenants rank among the top traffic generators for their respective chains in Florida, according to Placer.ai.

The Markets at Town Center is 97% occupied and offers a diverse mix of top tenants that blends grocery, lifestyle, and dining options with essential goods and services. The center is anchored by a Sprouts Farmers Market and shadow anchored by Costco Wholesale, with a high-quality tenant mix that includes Ulta Beauty, Cooper's Hawk Winery & Restaurant, Five Below, REI, J.Crew, Ballard Designs, Nordstrom Rack, DXL Big & Tall, Gen Korean BBQ, and Chipotle Mexican Grill. Built in 2008, the property presents significant mark-to-market opportunities due to below-market in-place leases, with several tenants set to expire over the coming years.



The acquisition of The Markets at Town Center expands Kimco's presence in the Jacksonville market, which comprised 6 properties totaling approximately 1.5 million square feet with an occupancy rate of 98.6% as of December 31, 2024. The property's strategic location, strong demographics, and diverse tenant mix position it as an attractive addition to Kimco's portfolio.

Ross Cooper, Kimco's President and Chief Investment Officer, commented on the acquisition, "Our first acquisition through the Structured Investment Program marks a significant milestone for Kimco. This unique and strategic program is a true differentiator for the company, enabling above average returns while providing the potential to transition into equity ownership of high-quality properties. We are excited to continue leveraging this program to acquire valuable assets and to unlock the full potential of each property through our extensive operating platform."

The acquisition of The Markets at Town Center aligns with Kimco's income-focused investment strategy, as the property's stable and affluent customer base, diverse tenant mix, and mark-to-market opportunities contribute to its potential for stable yields and capital gains. By strategically expanding its presence in the Florida market, Kimco demonstrates its commitment to diversifying its portfolio and adapting to changing market dynamics.