CTO Realty Growth, Inc.
WINTER PARK, Fla., Oct. 17, 2022 (GLOBE NEWSWIRE) — CTO Realty Growth, Inc. (NYSE: CTO) (the “Company” or “CTO”) announced today that it has acquired West Broad Village, a $392,000 property foot of mixed-use lifestyle property anchored in supermarkets in the Short Pump submarket of Richmond, Virginia (the “Property”) for a purchase price of $93.9 million. The purchase price represents an initial capitalization rate above the range of the Company’s current guidance for initial cash yields.
“We are very pleased to increase our exposure to grocery-anchored assets with our acquisition of West Broad Village, our first Whole Foods and REI-anchored lifestyle property,” said John P. Albright, president and chief executive officer of CTO Realty. Increase. “With future leasing opportunities to drive attractive stabilized cash flows, strong demographics supporting Richmond’s high quality of life, business-friendly policies, and steady demographic growth, West Broad Village represents an excellent opportunity for us to invest in a mainstream lifestyle property anchored in supermarkets. with long-term advantage.
West Broad Village was developed on 32.6 acres in phases between 2007 and 2014 and is surrounded by a mix of high-end residential, hotel and office properties. Prominently located on West Broad Street within the area’s main commercial corridor and adjacent to I-64 and the I-295 interchange, the well-located property has an expanded commercial area that allows it to benefit from median household income five miles from over $140,000 and a five mile population of nearly 175,000. West Broad Village is 83% occupied and consists of approximately 315,600 square feet of retail and 76,400 square feet of ancillary offices and includes an attractive mix of national and local tenants spanning the grocery, food and beverage, entertainment , education, home decoration, child care and medical sectors.
The Property was purchased through a 1031 like-for-like exchange using $35.0 million of restricted cash generated from the Company’s previously completed property dispositions, unrestricted cash on hand, and draws from the Company’s unsecured revolving credit facility. the company. The acquisition was structured as a like-for-like reverse exchange to account for possible future dispositions of the income properties by the Company.
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About CTO Realty Growth, Inc.
CTO Realty Growth, Inc. is a publicly traded real estate investment trust that owns and operates a portfolio of high-quality retail properties located primarily in the fastest growing markets in the United States. CTO also outsources and owns a significant interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net lease REIT.
We encourage you to review our most recent investor presentation and supplemental financial information, which is available on our website at www.ctoreit.com.
Safe Harbor
Certain statements contained in this press release (other than statements of historical fact) are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. , amended. Forward-looking statements can generally be identified by words such as “believe”, “estimate”, “expect”, “intend”, “anticipate”, “will”, “could”, “may”, “should”, “plan” . ”, “potential”, “predict”, “forecast”, “project” and similar expressions, as well as variations or negatives of these words.
Although forward-looking statements are based on management’s current expectations and reasonable beliefs about future developments and their potential effect on the Company, a number of factors could cause the Company’s actual results to differ materially from those set forth in the statements. forward-looking statements. Such factors may include, but are not limited to: the Company’s ability to remain qualified as a REIT; the Company’s exposure to changes in US federal and state income tax laws, including changes in REIT requirements; adverse economic and real estate conditions in general; macroeconomic and geopolitical factors, including, but not limited to, inflationary pressures, interest rate volatility, global supply chain disruptions, and ongoing geopolitical warfare; the ultimate geographic extent, severity, and duration of pandemics such as the COVID-19 pandemic and its variants, the measures that government authorities may take to contain or address the impact of such pandemics, and the potential negative impacts of such pandemics on the world economy and the financial condition and results of operations of the Company; the inability of primary tenants to continue paying their rent or obligations due to bankruptcy, insolvency, or general downturn in their business; the loss or failure, or decline in business or assets of PINE; carrying out 1,031 foreign exchange transactions; the availability of investment properties that meet the Company’s investment objectives and criteria; uncertainties associated with obtaining required government permits and meeting other closing conditions for planned acquisitions and sales; and the uncertainties and risk factors discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and other risks and uncertainties discussed from time to time in the Company’s filings with the Commission on US Stock and Exchange
There can be no guarantee that future developments will be in accordance with management’s expectations or that the effect of future developments on the Company will be as anticipated by management. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to update the information contained in this press release to reflect subsequent events or circumstances.
Contact:
Matthew M. Partridge
Senior Vice President, CFO and Treasurer
(407) 904-3324
[email protected]
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