Tuesday July 16th, 2013 - 3:17PM
NEW HYDE PARK, NY—Kimco Realty Corp. has closed on the sale of InTown Suites company and related real estate assets to an affiliate of Starwood Capital Group for a gross sales price of $735 million, including $609 million of existing mortgage debt.
Kimco Realty Corp.’s share of proceeds from this transaction after closing adjustments was approximately $103 million. Citigroup served as the financial advisor to InTown Hospitality Investors LP on the sale.
The InTown Suites portfolio represented the single largest remaining non-retail investment for the company with a book value of approximately $83 million. As a result of this sale and other non-retail transactions completed during the quarter, Kimco’s non-retail investment balance will be approximately $200 million or less than two percent of gross assets; the lowest level since the company initiated the monetization of its non-retail investments in 2010.
InTown Suites was owned by InTown Hospitality Investors LP, a joint venture in which Kimco held a 75 percent interest in a portfolio of 138 extended stay properties with approximately 18,000 rooms across 21 states.