CTO Realty Growth Announces Acquisition Of 446,500 Square Foot Retail Power Center In Dallas, Texas For US$61.2 Million

CTO Realty Growth, Inc. has announced the acquisition of Plaza at Rockwall, a 446,500 square foot multi-tenant retail power center in the Rockwall submarket of Dallas, Texas for a purchase price of US$61.2 million. The purchase price represents a going-in cap rate above the range of the Company’s current guidance for initial cash yields.

“The Plaza at Rockwall is a great addition to our high-quality, growth markets-focused portfolio, allowing us to increase exposure to the Dallas-Fort Worth metroplex in a high barriers-to-entry submarket with accretive demographics,” said President and Chief Executive Officer of CTO Realty Growth, John P. Albright,

“This acquisition is a terrific opportunity to invest at an attractive cost basis with a strong in-place yield, and it further diversifies our portfolio’s tenant mix, increasing our exposure to leading retailers such as Best Buy, Dick’s Sporting Goods, HomeGoods, and Ulta Beauty. Future cash flow growth will be driven by meaningful long-term re-leasing and repositioning opportunities, which are supported by excellent demographics from one of the most affluent submarkets in Texas.”

Plaza at Rockwall is situated on 42 acres along I-30, just over 20 miles northeast of downtown Dallas, Texas. The Property is 95 per cent occupied and is anchored by Best Buy, Ulta Beauty, Dick’s Sporting Goods, JCPenney, Belk, Five Below, and HomeGoods. Plaza at Rockwall is located within one of the wealthiest and fastest growing counties in Texas, benefiting from a five-mile population of nearly 99,000, five-mile average household incomes of more than US$142,500, and a five-year projected five-mile population growth rate of 1.25 per cent annually. Following the Company’s acquisition of the Property, Dallas-Fort Worth continues to be the Company’s second largest market exposure with approximately 18 per cent of the Company’s in-place annualized cash base rent coming from the metropolitan statistical area.

The Property was purchased using draws from the Company’s unsecured revolving credit facility. The acquisition was structured as a reverse like-kind exchange in anticipation of possible future income property dispositions by the Company.