Kimco Realty Acquires Two Dominant Grocery-Anchored Centers in Louisville

The initial property income yield exceeds the average on Kimco’s 2026 dispositions by over 100 basis points.

Rhea-AI Summary

Kimco Realty (NYSE: KIM) acquired Paddock Shops and Shelbyville Road Plaza, two grocery-anchored shopping centers in Louisville, for $295 million. The properties total over 741,000 square feet and are anchored by Trader Joe’s and The Fresh Market. Paddock Shops is 94% leased; Shelbyville Road Plaza is 92% leased.

The blended initial capitalization rate, a property income yield, is in the low 6% range, over 100 basis points above the approximately 5% average on Kimco’s 2026 dispositions. Funding came primarily from 1031 exchange proceeds from those sales; Kimco describes the acquisition as leverage-neutral. The company’s underwriting projects net operating income growth of approximately 4% annually over the next ten years, supported by below-market rents on some leases and opportunities to change the tenant mix. Kimco now owns three grocery-anchored Louisville centers totaling 911,000 square feet.

5 points · 0 major

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Positive

• Moderate point$295 million acquisition adds Paddock Shops and Shelbyville Road Plaza, totaling over 741,000 square feet. 1.8% of market cap
• Moderate pointLow 6% initial property income yield exceeds the approximately 5% average on 2026 dispositions by over 100 basis points.
• Minor point. Forward-looking: it has not happened yet and may not happen.Approximately 4% annual net operating income growth over the next ten years is projected in Kimco’s underwriting.
• Minor point. Forward-looking: it has not happened yet and may not happen.Below-market rents on some leases and tenant-mix changes offer growth opportunities identified by Kimco.
• Minor point1031 exchange proceeds from 2026 dispositions primarily funded the acquisition, which Kimco describes as leverage-neutral.

Negative

• None.

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$295 million acquisition of two East End centers recycles capital at an over 100 basis point spread, with embedded growth from below-market rents and remerchandising

JERICHO, N.Y., Nov. 02, 2026 (GLOBE NEWSWIRE) -- Kimco Realty^® (NYSE: KIM) today announced the $295 million acquisition of Paddock Shops and Shelbyville Road Plaza, two grocery-anchored, open-air shopping centers in Louisville’s East End, home to the metro’s most affluent and desirable trade area. Anchored by Trader Joe’s and The Fresh Market, the centers total over 741,000 square feet and each draw over 4 million annual visits, according to Placer.ai. Combined with Festival at Jefferson Court, the company’s existing Kroger-anchored center, the acquisitions establish Kimco’s dominant grocery-anchored presence in Louisville.

“Paddock Shops and Shelbyville Road Plaza are exactly the kind of centers we want to own: grocery-anchored, in the strongest trade areas of a supply-constrained market,” said Conor Flynn, Chief Executive Officer of Kimco Realty. “We sold lower-growth assets and reinvested the proceeds into higher-growth opportunities that strengthen our presence in a market we find very attractive. These centers also offer meaningful embedded upside through the recapture of below-market leases and the opportunity to further enhance the tenant mix with dynamic brands and specialty retailers.”

Acquisition Highlights

• Higher-yield capital recycling: Acquired at a low 6% blended going-in cap rate, over 100 basis points above the approximately 5% average cap rate on Kimco’s 2026 dispositions.
• Embedded growth: Below-market rents on a number of leases and a clear remerchandising runway, with net operating income underwritten to grow approximately 4% per year over the next ten years.
• Supply-constrained market: Louisville shopping center vacancy is 3.9%, versus 6% nationally, the market ranks among the top 10 major U.S. markets for occupancy, and no new shopping center space is under construction, according to Cushman & Wakefield.
• Self-funded, leverage-neutral: Primarily funded with 1031 exchange proceeds from 2026 dispositions.

Paddock Shops is a 351,000-square-foot lifestyle center in northeast Louisville, the market’s premier retail corridor, and is 94% leased. Its shopper base has a median household income of approximately $122,000, nearly double the statewide figure, with roughly 60% holding a bachelor’s degree or higher, according to Placer.ai. The center will become part of Kimco’s Lifestyle Collection, the company’s group of signature open-air and mixed-use centers. Shelbyville Road Plaza is a 390,000-square-foot center in St. Matthews, the established retail hub of the Louisville metro, and is 92% leased. Across the two centers, national tenants include REI, Total Wine & More, Pottery Barn, West Elm, ULTA Beauty, Nordstrom Rack, Burlington, Ross Dress for Less and Old Navy.

“Louisville is a market we’ve targeted, and these centers give us meaningful scale in one of the strongest retail corridors,” said Ross Cooper, President and Chief Investment Officer of Kimco Realty. “We see significant opportunity to leverage our One Kimco platform to expand occupancy, drive rent growth and unlock additional value at both properties. Owning Paddock Shops, Shelbyville Road Plaza and Festival at Jefferson Court makes us the first call for retailers entering or expanding in Louisville.”

With the acquisitions, Kimco now owns three grocery-anchored centers in Louisville totaling 911,000 square feet. To view the acquisition slide deck, click here.

CONTACT:
David F. Bujnicki
Senior Vice President, Investor Relations and Strategy
Kimco Realty Corporation
(833) 800-4343
dbujnicki@kimcorealty.com

FAQ

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How much did Kimco pay for Paddock Shops and Shelbyville Road Plaza?

Kimco acquired the two Louisville shopping centers for $295 million. Together, they total over 741,000 square feet and are anchored by Trader Joe’s and The Fresh Market.

How did Kimco fund its Louisville shopping center acquisition?

The acquisition was primarily funded with 1031 exchange proceeds from 2026 dispositions. Kimco describes the transaction as self-funded and leverage-neutral.