NEW HYDE PARK, N.Y.--(BUSINESS WIRE)--
Phase I Pentagon Centre Residential Tower Optimally Timed for Completion in 2019
Entitlements for the Pentagon Mixed-Use Site Allow for Over One Million Square Feet of Additional Density
Kimco’s New York Metro Portfolio Also Stands to Benefit from Amazon’s New Headquarters in Long Island City
Kimco Realty Corp. (KIM) today announced that its Pentagon Centre Signature Series mixed-use redevelopment is extremely well positioned to capitalize on the economic growth expected to follow Amazon’s selection of National Landing in Arlington, Virginia as one of two sites for its next headquarters. Located just a short walk across the street from the new Amazon headquarters, completion of Pentagon Centre’s 26-story, 440-unit residential tower will be optimally timed to capture the significant additional demand anticipated in Northern Virginia and the surrounding area. Furthermore, future phase entitlements already secured for Pentagon Centre allow for additional residential, retail, office and hotel space.
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Pentagon Centre is a multi-phase mixed-use redevelopment of an existing 329,000-square-foot retail center located directly above the Pentagon City Metro Station, diagonally across from Amazon’s planned headquarters and in close proximity to The Pentagon, Downtown DC, and Reagan National Airport. The project is owned in a joint venture in which Kimco holds a 55% interest.
Phase I of the center’s redevelopment, now under construction and close to 70% funded, includes The Witmer, a 26-story residential tower with 440 luxury apartment units and 7,000 square feet of retail on the ground floor. Residential leasing for Phase I is expected to begin in the spring of 2019, with move-ins to commence in the second half of 2019.
Phase II, which is already entitled with permits in progress, will include an additional 11-story residential tower with 253 units along with approximately 16,000 square feet of new retail.
Beyond Phase II, Kimco has also secured entitlements for future phases which would result in a fully developed site to include 346,000 square feet of retail; 705,000 square feet of office space; and a 200-room hotel in addition to the 693 residential units, which would combine to bring the total project size to nearly two million square feet.
The positive economic impact of Amazon’s National Landing headquarters is also expected to extend beyond the immediate neighborhood, into greater Virginia, Maryland and the District of Columbia. Kimco owns 42 shopping centers in the Baltimore/Washington D.C. market, totaling just under 8 million square feet and generating 11.8% of its annualized base rent. This cluster represents the second-highest concentration of properties within any core major metro market in Kimco’s portfolio.
“Our Pentagon Centre Signature Series redevelopment is in excellent position to take advantage of the incredible growth Amazon’s National Landing headquarters will bring to the area,” said Conor Flynn, Kimco’s Chief Executive Officer. “With The Witmer’s location directly above the Metro Station and its stunning views of the Pentagon, Potomac River and Washington Mall, it will be at the heart of this new center of gravity. The entitlements we’ve secured for additional density will enable us to fully realize the highest and best use and create the ultimate live/work/play environment. Amazon’s decision to split its new headquarters between National Landing, Virginia and Long Island City, New York is an immediate boon to the DC and New York metros, and our sizeable clusters of properties in both markets are well positioned to benefit.”
Kimco’s significant portfolio in the New York metropolitan statistical area (MSA) can also expect to capitalize on Amazon’s planned Long Island City presence. This MSA is the largest contributor to the company’s annualized base rent at 13.2%. Kimco owns 64 sites in the region totaling nearly 7.3 million square feet, with a substantial portfolio on Long Island plus several key redevelopments including The Boulevard, the company’s 460,000-square-foot Signature Series redevelopment on Staten Island now under construction, and future mixed-use opportunities in the Bronx and in Flushing, Queens, where additional density could be added.
Kimco Realty Corp. (KIM) is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that is one of North America’s largest publicly traded owners and operators of open-air shopping centers. As of September 30, 2018, the company owned interests in 450 U.S. shopping centers comprising 78 million square feet of leasable space primarily concentrated in the top major metropolitan markets. Publicly traded on the NYSE since 1991, and included in the S&P 500 Index, the company has specialized in shopping center acquisitions, development and management for 60 years. For further information, please visit www.kimcorealty.com, the company’s blog at blog.kimcorealty.com, or follow Kimco on Twitter at www.twitter.com/kimcorealty.
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Safe Harbor Statement
This news release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with the safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the company’s and management’s intentions, beliefs, expectations or projections of the future, are generally identifiable by use of the words “expect,” “anticipate,” “will,” “would,” “could” or similar expressions. It is important to note that the company’s actual results could differ materially from those projected in such forward-looking statements. Factors which may cause actual results to differ materially from current expectations include, but are not limited to, (i) developments in general economic and local real estate conditions that are adverse or that differ from the company’s expectations, including conditions in and around the areas of Crystal City, Virginia, and Long Island City, New York, (ii) the availability of suitable acquisition, disposition, development and redevelopment opportunities, and risks related to the company’s acquisition, disposition, development and redevelopment activities, (iii) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms to the company, (iv) the company’s ability to raise capital by selling its assets, (v) changes in governmental laws and regulations and management’s ability to estimate the impact of such changes, (vi) the level and volatility of interest rates and foreign currency exchange rates and management’s ability to estimate the impact thereof, (vii) competition with other commercial developers and real estate companies, (viii) valuation of marketable securities and other investments and (ix) increases in operating costs. Additional information concerning factors that could cause actual results to differ materially from those projected in such forward-looking statements is contained from time to time in the company’s SEC filings. Copies of each filing may be obtained from the company or the SEC.
The company refers you to the documents filed by the company from time to time with the SEC, specifically the section titled “Risk Factors” in the company’s Annual Report on Form 10-K for the year ended December 31, 2017, as may be updated or supplemented in the company’s Quarterly Reports on Form 10-Q and the company’s other filings with the SEC, which discuss these and other factors that could adversely affect the company’s results. The company disclaims any intention or obligation to update the forward-looking statements, whether as a result of new information, future events or otherwise.