Kimco to Acquire Two Louisville Centers for $295 Million

Key Facts

Kimco Realty announced on November 2, 2026, that it would acquire Paddock Shops and Shelbyville Road Plaza on Louisville’s east side for $295 million. The deal adds two grocery-anchored retail properties to the company’s portfolio in a market it describes as supply-constrained. CEO Conor Flynn said the centers are located in strong trade areas and that the deal strengthens Kimco’s presence in the city. The company is financing the acquisition primarily with proceeds from asset sales during 2026 through 1031 exchanges. The announcement comes as the company redirects capital toward opportunities it considers higher-growth.

The two centers have more than 741,000 square feet combined and each attracts more than 4 million visits annually, according to Placer.ai data cited by Kimco. Their retail offerings are anchored by Trader Joe’s and The Fresh Market, putting grocery stores at the heart of the tenant mix. Paddock Shops spans about 351,000 square feet and was 94% leased at the time of the announcement. The company classifies it as a lifestyle center and said it would add it to its Lifestyle Collection. Shelbyville Road Plaza spans about 390,000 square feet and was 92% leased.

Kimco estimated the deal’s blended initial capitalization rate at about 6%, saying it exceeds by more than 100 basis points the roughly 5% average cap rate of assets it disposed of during 2026. The gap reflects the company’s use of sale proceeds to acquire two centers it expects to generate a higher operating return than the assets sold. Flynn said: "We sold lower-growth assets and reinvested the proceeds in higher-growth opportunities that strengthen our presence." According to the announcement, financing through 1031 exchanges is the primary source of funds for the acquisition. The deal fits Kimco’s capital-recycling policy, shifting investment to grocery-anchored centers in its home market.

Kimco expects the centers’ net operating income to grow about 4% annually over the next 10 years. The company attributed the growth potential to recapturing rents below market levels and improving the tenant mix. Occupancy rates at the time of the announcement provide an existing operating base for the centers, with 6% of Paddock Shops and 8% of Shelbyville Road Plaza remaining unleased. The estimate does not mean that the growth has already occurred; it is the company’s forecast for the coming years. Kimco said the properties serve strong trade areas in a market where it sees limited supply supporting their prospects.

Kimco, citing Cushman & Wakefield, said Louisville’s shopping-center vacancy rate is 3.9%, compared with 6% nationally, and that no new shopping-center space was under construction in the market at the time of the announcement. The company says the deal will bring its local holdings to three grocery-anchored centers with a combined 911,000 square feet. The two newly acquired properties therefore expand its presence in a market it describes as having low vacancy and limited new additions. The expansion comes as Kimco’s portfolio recorded a record 96.6% occupancy in the third quarter of 2026, up 90 basis points year over year. Small-shop occupancy also reached a record 92.9% in the same quarter.

Kimco’s third-quarter 2026 results showed same-property net operating income growth of 4.9% year over year, driven by a 3.2% increase in minimum rents. Cash rent spreads on comparable new leases were 31.5%, the company said, indicating the gap between new leases and existing rents at comparable properties. Flynn said the company redeployed capital from the sale of a mixed-use property during the quarter into $150 million of common-share repurchases, while continuing to shift capital from lower-growth ground leases to higher-growth grocery centers. The company had also cited $76 million in annual base rent from signed leases not yet commenced as of its October 29, 2026, announcement. It said operating momentum enabled it to raise its full-year outlook again.

Kimco Realty shares, trading under the ticker KIM, closed at $25.55 on November 13, 2026, according to EL7 data. In its third-quarter results announcement, the company said the regular quarterly dividend of $0.28 per share would be paid on December 18, 2026, to shareholders of record on December 4. That is the next dividend payment date the company announced after its quarterly results. The deal’s projected operating-income growth remains dependent on Kimco’s ability to recapture rents and improve the tenant mix over the next 10 years. The company thus places the acquisition within a plan to recycle capital and expand its portfolio of grocery centers in Louisville.