Kimco Realty pays $109M for Tamarac, Pompano Beach retail centers

Kimco Realty, the publicly traded shopping center REIT, has paid $109 million for two grocery-anchored retail centers in Broward County, buying Sunshine Plaza in Tamarac and Pompano Marketplace in Pompano Beach from New York-based seller KPR Centers, according to Commercial Observer.

Why it matters

Grocery-anchored retail keeps finding institutional buyers even as capital stays selective elsewhere, and Kimco’s willingness to write a nine-figure check for two Broward centers is a read on how national REITs are pricing necessity retail in South Florida right now. For developers and agents tracking exit values on stabilized retail, this deal sets a fresh, dated comp for anything anchored by a grocer or a discount box in the corridor between Tamarac and Pompano Beach.

The numbers

Kimco paid $56 million for Sunshine Plaza, a 245,744-square-foot center anchored by Publix and Marshalls on West Commercial Boulevard in Tamarac. It paid $53 million for the 254,749-square-foot Pompano Marketplace, anchored by a Walmart Neighborhood Market on South Federal Highway in Pompano Beach. Across the combined 500,493 square feet, the $109 million price works out to roughly $218 per square foot. KPR Centers bought Sunshine Plaza for $28.5 million in 2014 and Pompano Marketplace for $46.8 million in 2015. That means Sunshine Plaza’s basis nearly doubled, up about 96%, over KPR’s roughly twelve-year hold, while Pompano Marketplace gained only about 13% over roughly eleven years, a wide spread between two centers sold in the same package.

What’s next

Watch whether Kimco discloses the deal in its next quarterly filing and whether it moves to re-tenant or renovate either center now that both anchors, Publix and Walmart, are locked in as the traffic driver. For the broader South Florida retail market, the gap between Sunshine Plaza’s and Pompano Marketplace’s appreciation is worth watching as a signal of which grocery-anchored basis years still have room to run.