Investor demand for well-located grocery-anchored retail centers in the Sun Belt continues to grow
JLL Capital Markets completes recapitalization for portfolio of six Publix-anchored retail centers in South Florida and Atlanta
MIAMI, Oct. 28, 2021 – JLL Capital Markets announced today that it has completed the recapitalization of a portfolio of six dominant Publix-anchored shopping centers totaling 1.22 million square feet in South Florida and Atlanta, Georgia.
JLL marketed the portfolio on behalf of the ownership, a joint venture between Jamestown and Weingarten Realty Investors, who merged with Kimco Realty Corp. in August 2021. Kimco Realty Corp. (NYSE: KIM) acquired a 70 percent interest in the assets and has since entered into a joint venture partnership with Blackstone Real Estate Income Trust, Inc. (BREIT), where upon closing, Kimco will own 50 percent of the portfolio and BREIT will own the remaining 50 percent interest.
Every asset in the portfolio is anchored by Publix. The assets include five properties in South Florida, Flamingo Pines Shopping Center at 12550 Pines Blvd. and Pembroke Commons at 600 N. University Dr. in Pembroke Pines; Hollywood Hills Plaza I and II at 3251 Hollywood Blvd. in Hollywood; Northridge Shopping Center at 1002 E. Commercial Blvd. in Oakland Park (Fort Lauderdale MSA); and Tamiami Trail Shops at 13850 SW 8th St. in Miami. The portfolio also includes Publix at Princeton Lakes at 3730 Carmia Dr. SW in Atlanta.
The JLL Capital Markets team that represented the seller was led by Senior Managing Director and co-head of JLL’s Retail Capital Markets team Danny Finkle, Senior Managing Director Jim Hamilton, Senior Directors Eric Williams and Brad Buchanan, Vice President Kim Flores and Associate Andrew Michols.
“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. “This was truly a generational opportunity for Kimco to increase their scale in two of the top-performing and high barrier-to-entry retail markets in the U.S. by increasing their ownership stake in this high-quality portfolio.”
Robust population and employment growth, along with a significant amount of corporate relocations, are currently fueling South Florida commercial real estate market fundamentals. Additionally, Atlanta is the third fastest-growing metro area in the U.S. and is projected to grow 5.6 percent over the next four years.
“The consistent population growth and influx of new residents to the southeast is rapidly densifying the consumer base,” Williams added. “This, coupled with historically low new retail deliveries, is driving demand for grocery-anchored retail, which remains a compelling investment for attractive risk adjusted returns relative to other asset classes.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 92,000 as of June 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
Jamestown is a global, design-focused real estate investment and management company with a clear mission to transform spaces into innovation hubs and community centers. Jamestown employs more than 400 people worldwide with headquarters in Atlanta, Georgia, and Cologne, Germany, and offices in Amsterdam, Bogotá, Boston, London, Los Angeles, Madrid, Milan, New York, and San Francisco. Since its founding in 1983, Jamestown has executed transactions in excess of $35 billion. As of June 30, 2021, Jamestown has assets under management of $12.4 billion and a portfolio spanning key markets throughout the U.S., Latin America, and Europe. Current and previous projects include Chelsea Market in New York City, Industry City in Brooklyn, Ponce City Market in Atlanta, Ghirardelli Square in San Francisco, the Innovation and Design Building in Boston, and Groot Handelsgebouw in Rotterdam. Jamestown also invests in real estate startups and technology businesses that differentiate its properties and enable innovation across its portfolio. For more information, visit jamestownlp.com.
Kimco Realty Corp. (NYSE: KIM) is a real estate investment trust (REIT) headquartered in Jericho, N.Y., that is North America's largest publicly traded owner and operator of open-air, grocery-anchored shopping centers and mixed-used assets. The company's portfolio is primarily concentrated in the first-ring suburbs of the top major metropolitan markets, including those in high-barrier-to-entry coastal markets and rapidly expanding Sun Belt cities, with a tenant mix focused on essential, necessity-based goods and services that drive multiple shopping trips per week. Kimco is also committed to leadership in environmental, social and governance (ESG) issues and is a recognized industry leader in these areas. Publicly traded on the NYSE since 1991, and included in the S&P 500 Index, the company has specialized in shopping center ownership, management, acquisitions, and value enhancing redevelopment activities for more than 60 years. As of June 30, 2021, the combined portfolios of Kimco and Weingarten totaled interests in 549 U.S. shopping centers and mixed-use assets comprising approximately 94 million square feet of gross leasable space.