Kimco Realty Joins Hendricks Commercial Properties at Fritz Farm in Newmark-Arranged Recapitalization With $104M Blackstone Loan

Newmark has arranged the recapitalization of Fritz Farm, a 330,077-square-foot lifestyle center and mixed-use destination in Lexington, Kentucky, adding Kimco Realty as a preferred equity investor in the property, the firm announced Oct. 26. Hendricks Commercial Properties (HCP) acquired the asset in 2025. The transaction includes $104 million in senior financing provided by funds managed by Blackstone.

Newmark Team Arranges Equity and Debt for Hendricks Commercial Properties

Newmark President and Head of Retail Capital Markets for North America Conor Lalor represented Hendricks Commercial Properties in the transaction. Vice Chairman Chris Kramer and Associate Director Dan Axelson arranged the $104 million senior financing from Blackstone-managed funds.

The structure allows Hendricks Commercial Properties to bring in capital from Kimco Realty as a preferred equity provider while Blackstone funds supply the senior debt. The senior loan equates to approximately $315 per square foot based on the 330,077-square-foot figure Newmark reported.

"Fritz Farm is Lexington's premier mixed-use project, drawing customers from throughout Kentucky," Lalor said. "The partnership between Hendricks Commercial and Kimco Realty is a win-win, not only for the partners, but also for the community of Lexington that will benefit from excellent long-term stewardship of its flagship retail destination."

Fritz Farm Lifestyle Center: Property Profile

Fritz Farm, also known as The Summit at Fritz Farm, is located at the intersection of Nicholasville Road and Man O' War Boulevard in Lexington. Its address is 120 Summit at Fritz Farm, Lexington, KY 40517. The center was delivered in 2017 on approximately 36 acres and is 92.6% occupied.

The property is home to the Lexington market's only Whole Foods Market. Its tenant mix includes national retailers, restaurants and experiential offerings, among them Apple, Sephora, Nike, lululemon, Kendra Scott and Williams Sonoma. The project is configured as a three-floor retail, dining and entertainment center.

Approximately six acres remain available for future development, and the property carries development rights for additional retail and residential components. Hendricks' own property materials list the center at approximately 325,600 square feet, a difference that likely reflects a variation in measurement scope. The broader Fritz Farm mixed-use development has been described as approximately 52 acres, which likely includes land beyond the retail center.

Newmark described Fritz Farm as the state's most-visited lifestyle center and a key retail destination for residents and visitors. Lexington's economy is supported by demand drivers that include the University of Kentucky, the region's equine industry and Kentucky's bourbon sector.

Kimco Realty Takes a Structured Position in Lexington Retail

The investment brings Kimco Realty, one of the largest U.S. open-air shopping-center owners, into the Lexington asset through preferred equity rather than an outright acquisition. Preferred equity can provide a property owner with additional capital while allowing the existing sponsor to retain operating control.

Kimco reported a 96.4% portfolio occupancy rate in the second quarter of 2026, matching its all-time high, along with record small-shop occupancy of 92.9%. The company reported pro-rata cash-rent spreads of 40.4% on comparable new leases and leased 2.5 million square feet across 461 leases during the quarter. Funds from operations per diluted share rose 4.5% year over year to $0.46.

Through July 31, 2026, Kimco reported approximately $109 million of acquisitions at a 5.7% weighted-average cap rate, $261 million of dispositions at a 5.1% weighted-average cap rate, and $8 million of structured investments at a 9.6% weighted-average yield.

Fritz Farm's 92.6% occupancy is below Kimco's portfolio-wide 96.4%, and the six acres of undeveloped land offer a potential avenue for expanding the center's tenant mix without assembling a new site.

Lexington Retail Market Context

The Louisville–Lexington retail market reported a vacancy rate of 3.1% in the second quarter of 2026, with approximately 380,000 square feet of absorption and 4.7% annual asking-rent growth. Average retail cap rates in the market were reported at 8.3%, with average transaction pricing of approximately $146 per square foot.

Sources

Newmark press release, Oct. 26, 2026: Newmark Arranges Recapitalization, Financing of Fritz Farm Lifestyle Center in Lexington, Kentucky