Kimco sells InTown Suites in deal valued at $735M
NEW HYDE PARK, N.Y. (AP) — Kimco Realty Corp. said Monday that it has agreed to sell a portfolio of extended-stay properties operated under the InTown Suites brand to an affiliate of Starwood Capital Group in a deal valued at $735 million.
The sale price includes the assumption of $617 million in debt.
Under the terms of the deal, Kimco also agreed to maintain $147.5 million in guarantees of outstanding debt to be assumed by Starwood Distressed Opportunity Fund IX.
InTown Suites is owned by InTown Hospitality Investors LP, a joint venture in which Kimco holds a 75 percent stake.
The InTown portfolio is comprised of 138 properties with about 18,000 rooms in 21 states, but mainly concentrated in Texas, Georgia and Florida.
Kimco expects the transaction to be completed in the first half of next year.
Shares in Kimco ended regular trading down 11 cents at $20.47. The stock added 9 cents to $20.56 in after-hours trading.