Kimco Realty Corp. Announces the Execution of a Purchase and Sale Agreement for the Disposition of InTown Suites
Kimco Realty (NYSE: KIM), North America's largest owner and operator of neighborhood and community shopping centers, today announced that a purchase and sale agreement has been executed with a subsidiary of Starwood Distressed Opportunity Fund IX, an affiliate of Starwood Capital Group, a leading global real estate investment firm, to sell the InTown Suites company and related real estate assets for a gross sales price of $735 million, including $617 million of existing debt.
InTown Suites is owned by InTown Hospitality Investors LP, a joint venture in which Kimco holds a 75 percent interest. The InTown Suites portfolio is comprised of 138 extended stay properties with approximately 18,000 rooms across 21 states that are predominantly located in the Southeast and Southwest, with concentrations in Texas, Georgia and Florida.
The sale is contingent upon Starwood Distressed Opportunity Fund IX's satisfactorily completing its due diligence process and other closing conditions, including lender approvals. Kimco expects to complete this transaction in the first half of 2013. If the transaction is completed, Kimco has agreed to maintain $147.5 million in preexisting guarantees of outstanding debt to be assumed by Starwood Distressed Opportunity Fund IX.
Citigroup served as the financial advisor to InTown Hospitality Investors LP on the sale.
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