|
7/14/17
|
Kimco Realty Corporation purchased Jantzen Beach Center, a 746k sf, open-air shopping center on 67 acres in Portland, OR, for $131.8 mil. That price works out to $177/sf, substantially below replacement cost.
Originally constructed in 1972, the property underwent renovations in 2010 and 2014 totaling around $40 mil. The center is 96% occupied and features a prime collection of national tenants in today’s strongest retail categories, including Home Depot, Target, TJ Maxx, HomeGoods, Ross Stores, Burlington, Petco, Best Buy, DSW and Michaels.
Jantzen Beach Center sits along Portland’s busy I-5 artery, with traffic counts of over 128,000 cars per day. As one of the only major shopping centers in the region, the center’s trade area extends over 10 miles, reaching into neighboring Washington State, and its sales tax-free shopping attracts approximately five million visits per year. Furthermore, Jantzen Beach is located within the Urban Growth Boundary of Portland, which serves to control urban expansion and poses a formidable barrier to entry in this desirable market.
The Jantzen Beach Center acquisition will expand the company’s future redevelopment pipeline through potential outparcel development of two 6k sf pad buildings, and mixed-use densification opportunities supported by flexible zoning. The center also offers strong mark-to-market upside from several below-market anchor leases. Jantzen Beach is the company’s eighth property in the Portland-Vancouver-Hillsboro MSA, expanding Kimco’s concentration in a top 25 market where it also maintains a regional office.
“Jantzen Beach is a flagship asset located in a coastal, in-demand market with significant barriers to entry,” said Ross Cooper, President and Chief Investment Officer of Kimco Realty. “This asset exemplifies a key component of our strategic 2020 Vision to upgrade the quality of our portfolio with selective acquisitions funded by disposition proceeds.”
|
|
Return to the Archive page
|
|
|
|
|