Kimco Realty announced Jan. 8 it bought The Markets at Town Center for $108 million.
The 245,000-square-foot shopping center is at 4865 Town Center Parkway.
The deed had not been recorded with the Duval County Clerk of the Court office as of Jan. 9.
The seller was Big V Property Group of Charlotte, North Carolina. It bought The Markets at Town Center for $93 million in November 2021.
Jericho, New York-based Kimco is a real estate investment trust specializing in owning and operating open-air, grocer-anchored shopping centers and mixed-use properties.
The company owns six more shopping centers in the Jacksonville market that total about 1.5 million square feet of space with a 98.6% occupancy rate.
They include Argyle Village, Atlantic West, Kernan Village, Parkway Shops, River City Marketplace and Riverplace S.C., according to the Kimco website.
This is the first property Kimco has acquired through its Structured Investment Program, according to the news release announcing the sale. It is designed to deploy mezzanine financing while securing rights of first refusal or rights of first offer on portfolio-enhancing assets.
According to The Wall Street Journal, mezzanine debt is a hybrid of debt and equity financing and offers higher interest rates. It says mezzanine loans offer a faster and easier path to foreclose than mortgages. The Journal said they aren’t technically mortgages and don’t appear in property records.
Kimco said it previously provided $15 million in mezzanine financing for the property, which was repaid at closing.
“Our first acquisition through the Structured Investment Program marks a significant milestone for Kimco,” Ross Cooper, Kimco’s president and CIO, said in the release.
“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.”
Kimco states the average household income within a 5-mile radius of the property is $95,000. Stores at The Markets at Town Center receive more than 4 million visits annually.
The Markets at Town Center opened in 2008. It is 97% occupied.
Tenants include Sprouts Farmers Market; Ulta Beauty; Cooper’s Hawk Winery & Restaurant; Five Below; REI; J.Crew Factory; Ballard Designs; Nordstrom Rack; DXL Big & Tall; Gen Korean BBQ House; and Chipotle Mexican Grill.