Kimco Realty has expanded its grocery-anchored retail footprint in Louisville with the acquisition of Paddock Shops and Shelbyville Road Plaza for a combined $295 million. The two shopping centers are described as grocery-anchored and located in key trade areas of what the company characterizes as a supply-constrained market. Both assets add scale to Kimco’s regional portfolio and deepen its presence in a market where it now owns three grocery-anchored centers.
Combined, Paddock Shops and Shelbyville Road Plaza encompass more than 741,000 square feet of retail space. The centers are anchored by Trader Joe’s and The Fresh Market, positioning the properties around established specialty grocers. Kimco reports that Paddock Shops is 94% leased, while Shelbyville Road Plaza is 92% leased, indicating relatively limited vacancy across the two assets at closing.
In explaining the rationale for the transaction, Kimco CEO Conor Flynn said the assets align with the company’s focus on owning grocery-anchored centers in the strongest trade areas of supply-constrained markets. He also pointed to embedded upside potential through the recapture of below-market leases and the ability to refine the tenant mix by adding what he termed dynamic brands and specialty retailers. The company views these levers as key drivers of incremental value over time.
Kimco noted that the acquisitions were funded primarily with 1031 exchange proceeds generated from dispositions completed in 2026. By redeploying capital through like-kind exchanges, the company is repositioning its portfolio into grocery-anchored product with high occupancy levels. Kimco’s underwriting for the newly acquired Louisville centers projects net operating income growth of approximately 4% annually over the next decade.
Following the completion of these acquisitions, Kimco now controls three grocery-anchored retail centers in Louisville totaling 911,000 square feet. The latest purchases reinforce the company’s concentration on grocery and specialty-anchored formats and add scale in a market where it sees continued potential to enhance performance through leasing, tenant mix optimization, and the rollover of below-market rent.
