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Shopping center REIT KIMCO Realty (NYSE: KIM ) announced yesterday that it sold to an affiliate of Starwood Capital Group its InTown Suites company and related real estate assets for $735 million, including $609 million of existing mortgage debt. Upon closing, KIMCO realized approximately $103 million in proceeds.
With a book value of approximately $83 million, the InTown Suites portion of its portfolio represented the REIT's single largest remaining non-retail investment. It consisted of a portfolio of 138 extended-stay properties with approximately 18,000 rooms across 21 states in which KIMCO held a 75% interest through a joint venture.
KIMCO's non-retail investment balance will now be approximately $200 million, or less than 2% of its gross assets, the lowest level since the company initiated the monetization of its non-retail investments in 2010.
Citigroup served as the financial advisor on the sale to the owner of the portfolio, InTown Hospitality Investors.