KIMCO Sells Off Largest Non-Retail Part of Portfolio
Shopping center REIT KIMCO Realtyannounced yesterday that it sold to an affiliate of Starwood Capital Group its InTown Suites company and related real estate assets for $735 million, including $609 million of existing mortgage debt. Upon closing, KIMCO realized approximately $103 million in proceeds.
With a book value of approximately $83 million, the InTown Suites portion of its portfolio represented the REIT's single largest remaining non-retail investment. It consisted of a portfolio of 138 extended-stay properties with approximately 18,000 rooms across 21 states in which KIMCO held a 75% interest through a joint venture.
KIMCO's non-retail investment balance will now be approximately $200 million, or less than 2% of its gross assets, the lowest level since the company initiated the monetization of its non-retail investments in 2010.
Citigroup served as the financial advisor on the sale to the owner of the portfolio, InTown Hospitality Investors.
The article KIMCO Sells Off Largest Non-Retail Part of Portfolio originally appeared on Fool.com.Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool owns shares of Citigroup. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.