Kite Trades 2 Retail Assets for $63M
- Mar 20, 2018
Kite Realty Group Trust has sold two of its southern U.S. shopping centers for a total of $63 million. Trussville Promenade in Birmingham, Ala., was acquired by Acadia Realty Trust for $45.2 million, according to Jefferson County records. Kite disposed of the other asset, Memorial Commons in Goldsboro, N.C., for $17.8 million. The seller used the proceeds to pay its unsecured revolving line of credit.
Located at 5866 Chalkville Mountain Road in Birmingham, Trussville Promenade is a 463,836-square-foot shopping center located on 72.2 acres of land situated within a mile of Interstate 59. The buildings were constructed in 1999, 2000 and 2003. Kite purchased the property in December 2013 for $46.3 million from a joint venture between Oz Management and Colonial Properties Trust, according to public records. The retail asset is anchored by Walmart, Regal Cinemas and Marshalls.
Memorial Commons, situated at 2120 Wayne Memorial Drive in Goldsboro, is a 111,022-square-foot retail center located on a 12.9-acre plot next to U.S. Highway 13, one of the city’s major thoroughfares. Kite picked up the property in 2014 for $17.8 million from Casto Southeast Realty Services, data from the Wayne County assessor shows. Memorial Commons was built in 2008 and expanded in 2013. Major tenants at the property include Harris Teeter and Office Depot.
“We sold these non-core assets in secondary markets to further our deleveraging strategy and to continue improving the quality of our portfolio,” said John Kite, CEO of Kite Realty, in a prepared statement. “These two centers had average base rents and demographics well below those for the balance of our portfolio, and this sale now completes our exit from the Alabama market.”
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