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CTO Realty Growth Announces Acquisition of Three-Property Portfolio and Sale of Jordan Landing Property

Strategic Insights

— 2 min read

CTO Realty Growth, Inc. (NYSE: CTO) has announced the acquisition of a three-property portfolio in Charlotte, North Carolina; Orlando, Florida; and Tampa, Florida, for $137.5 million. The acquisition includes three open-air shopping centers with a total gross leasable area of approximately 0.9 million square feet, which are approximately 94.2% leased. The company has also entered into a purchase and sale agreement for the sale of its Jordan Landing property in West Jordan, Utah, for $18.0 million. Additionally, CTO Realty Growth has completed a $10.0 million preferred equity investment in a real estate company with a dividend rate of 14.0% per annum and a 1.00% origination fee.

Key Takeaways:

  • CTO Realty Growth has entered into a purchase and sale agreement for the acquisition of a three-property portfolio for $137.5 million, comprising three open-air shopping centers in Charlotte, North Carolina; Orlando, Florida; and Tampa, Florida, with a total gross leasable area of approximately 0.9 million square feet.
  • The acquired properties are approximately 94.2% leased, with a weighted average remaining lease term of 6.2 years as of August 7, 2024.
  • CTO Realty Growth has also completed a $10.0 million preferred equity investment in a real estate company with a dividend rate of 14.0% per annum and a 1.00% origination fee.
  • The company has entered into a purchase and sale agreement for the sale of its Jordan Landing property in West Jordan, Utah, for $18.0 million, with an anticipated closing date prior to the end of August 2024.
  • The sale of Jordan Landing will mark the completion of the third quarter, after which all of the company's properties will be located in the Southeast and Southwest markets of the United States.
  • Since the beginning of the third quarter, CTO Realty Growth has executed new leases and renewals totaling approximately 69,000 square feet, resulting in an increase in leased occupancy to 96.0% compared to 94.6% as of June 30, 2024.
  • The company's signed not open pipeline now represents $5.7 million, or 7.2%, of annual in-place cash base rent as of June 30, 2024.

Statistics:

  • $137.5 million: Purchase price for the three-property portfolio.
  • 0.9 million square feet: Total gross leasable area of the acquired properties.
  • 94.2%: Leasing rate of the acquired properties as of August 7, 2024.
  • 6.2 years: Weighted average remaining lease term of the acquired properties as of August 7, 2024.
  • $10.0 million: Amount of preferred equity investment in a real estate company.
  • 14.0%: Dividend rate of the preferred equity investment.
  • 1.00%: Origination fee of the preferred equity investment.
  • $18.0 million: Sale price of the Jordan Landing property.
  • 96.0%: Leased occupancy of CTO Realty Growth's properties as of the beginning of the third quarter.
  • 94.6%: Leased occupancy of CTO Realty Growth's properties as of June 30, 2024.
  • $5.7 million: Amount of the company's signed not open pipeline as of June 30, 2024.
  • 7.2%: Percentage of annual in-place cash base rent represented by the signed not open pipeline as of June 30, 2024.

Sources:

  • GlobeNewswire, "CTO Realty Growth, Inc. Announces Acquisition of Three-Property Portfolio and Sale of Jordan Landing Property," August 8, 2024
  • CTO Realty Growth, Inc. (NYSE: CTO) (Company website)

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