CTO Realty Growth Acquires Lifestyle Center for $79.8 Million
CTO Realty Growth, Inc. (CTO) has made a significant addition to its portfolio by acquiring Ashley Park, a vibrant lifestyle center in the Newnan area near Atlanta. This acquisition, valued at $79.8 million, aligns with CTO's strategy to enhance its holdings in high-growth markets. The property spans 559,000 square feet and is situated on 60 acres, marking a vital expansion in the company's retail investment landscape.
Details of the Acquisition
The purchase price for Ashley Park reflects a cap rate that falls near the upper end of CTO's current projections for initial cash yields, indicating a smart investment strategy. With this acquisition, CTO Realty Growth's total portfolio now comprises 5.2 million square feet, showcasing a notable increase of 12%. John P. Albright, President and CEO, emphasized the strategic advantage this acquisition brings, stating, "This addition allows us to leverage our talented local team to capitalize on operational efficiencies while solidifying our presence in our largest market. Around 82% of our base rent now stems from properties in key states such as Georgia, Florida, Texas, and North Carolina."
Key Tenants and Occupancy
Ashley Park is anchored by reputed brands including Dick's Sporting Goods, Best Buy, and Barnes & Noble, contributing to its robust occupancy rate of 93%. The center also boasts multiple other tenants such as Regal and Dillard's, making it an attractive destination for shoppers. With an annual visitation exceeding six million, Ashley Park holds a strategic location along I-85, positioned south of the Hartsfield-Jackson Airport, enhancing its accessibility and appeal.
Strengthening the Brand
This acquisition is particularly significant as Dick's Sporting Goods becomes CTO's fifth-largest tenant, which not only strengthens the property's tenant mix but also reflects the company's commitment to partnering with recognized brands in the retail space. The below-replacement cost at which the property was acquired, coupled with an opportunity for lease-up and market rent adjustments, positions CTO Realty Growth to unlock long-term value.
About CTO Realty Growth, Inc.
CTO Realty Growth, Inc. is dedicated to owning and managing prime open-air shopping centers in the dynamic Southeast and Southwest regions of the United States. The company's portfolio includes robust investments in other real estate entities, notably holding a substantial interest in Alpine Income Property Trust, Inc. (PINE).
Contact Information
For more information or investor inquiries, please reach out to the Investor Relations team at ir@ctoreit.com.
Frequently Asked Questions
What is Ashley Park?
Ashley Park is a lifestyle center located in the Newnan submarket of Atlanta, comprising 559,000 square feet of retail space.
How much did CTO Realty Growth pay for the acquisition?
CTO Realty Growth acquired Ashley Park for $79.8 million.
What percentage of CTO’s rent is derived from properties in Georgia, Florida, Texas, or North Carolina?
Approximately 82% of CTO's annual base rent comes from properties located in these states.
Who are the key tenants at Ashley Park?
Key tenants include Dick's Sporting Goods, Best Buy, Barnes & Noble, Regal, and Dillard's.
How does this acquisition benefit CTO Realty Growth?
This acquisition enhances CTO's portfolio, provides operational synergies, and increases the overall portfolio size by 12%.
