The investors behind the $785M purchase earlier this year of Legacy West are teaming up again on a deal involving two more Dallas-Fort Worth shopping centers.
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Indiana-based Kite Realty Group entered into a second joint venture with Singaporean sovereign wealth fund GIC and contributed retail centers totaling 921K SF in Denton, Frisco and Port St. Lucie, Florida, to seed the JV. The REIT made more than $112M on its contributions to the joint venture and will retain a 52% ownership interest in the shopping centers.
Kite Realty will also continue to operate the centers and earn market-rate management fees, the company announced as part of its second-quarter operating results report Wednesday.
The DFW-area properties included in the deal are the 343K SF Denton Crossing at South Loop 288 and Spencer Road in Denton and the 178K SF Parkway Towne Crossing at Dallas Parkway and Eldorado Parkway in Frisco. Denton Crossing features tenants such as Kroger, Best Buy and HomeGoods, while Parkway Towne Crossing's biggest retailers are Target, Best Buy and Michaels.
The final asset is The Landing at Tradition, a 397K SF shopping center in Port St. Lucie.
The investors’ first JV closed one of the region's largest real estate deals of the year when it purchased the luxury mixed-use Legacy West development in Plano.
As part of that acquisition, Kite Realty and GIC assumed a $304M mortgage at a 3.8% coupon. Kite Realty owns a 52% interest in the development and serves as its operator.
The Karahan Cos. partnered with Columbus Realty more than a decade ago to build the 1.1M SF Legacy West mixed-use development for $282M. The 35-acre site features 344K SF of retail, including luxury tenants such as Gucci, Louis Vuitton and Chanel. Legacy West also has 444K SF of office space and nearly 800 multifamily units.
Like Legacy West, the three retail centers that are part of the investors’ second joint venture are all open-air developments. That retail type experienced a little less than 1% growth in shopper visits during the first half of 2025 compared to the same time period last year, according to data from foot traffic analytics firm Placer.ai.
Traffic dropped at all retail formats in June after consumers stocked up on items in April and May ahead of expected price increases due to tariffs. Visits to indoor malls saw the biggest jump during the first half of the year, as that format’s traffic grew nearly 2% compared to 2024.
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