DAYTONA BEACH, Fla., December 21, 2021 (GLOBE NEWSWIRE) – CTO Realty Growth, Inc. (NYSE: CTO) (the âCompanyâ or âCTOâ) today announced the acquisition of a mixed-use property totaling approximately 137,000 square feet in downtown Santa Fe, New Mexico (the “Property”) for $ 16.3 million, or $ 118 per square foot. The Company also announced the sale of a single tenant building located in Falls Church, Virginia, leased to 24 Hour Fitness.
âOur acquisition in Santa Fe is a unique situation where we are able to opportunistically acquire an extremely well located property with immediate upward repositioning in a dynamic market with attractive growth prospects,â said John P. Albright, President and CEO of CTO Growth Real Estate. âSanta Fe has several distinct economic and lifestyle demand drivers that have resulted in disproportionate growth for the market in recent years. The property has a 9,000 square foot vacancy with stunning city and mountain views which may present a residential repositioning opportunity and a 12,500 square foot corner vacancy which represents a tremendous dining opportunity. We are optimistic about the strength of the market and our repositioning plan for the property may generate disproportionate risk-adjusted returns for our investors once the asset stabilizes.
The 1.5 acre property is made up of two buildings with dedicated underground parking covering almost an entire city block, just north of the historic Santa Fe Plaza in downtown Santa Fe, the capital of New Mexico, and right in front of the 5-star Rosewood Inn of the AnasaziÂ®. The property is 66% occupied, close to Santa Fe’s artistic, cultural and culinary destinations, and is anchored by Deloitte, Morgan Stanley, The Bull Ring, Regus, Avalon Trust Company and Raymond James. The property will be the new home of The Santa Fe New Mexican, a popular news and media company known as the oldest newspaper company in the west. The Company will hold fee rights and leasehold rights in the property through two long-term land leases that partially underpin each building.
The Company hired Colliers as the new property manager and NAI SunVista as the Company’s rental representative, both of which have a strong presence in Santa Fe. The Company purchased the Property using available cash and availability. under the Company’s unsecured revolving credit facility.
The Falls Church, Va. Property leased to 24 Hour Fitness was sold on December 16, 2021 for $ 21.5 million, representing an in-place cap rate of 6.5%. The proceeds of the sale should be part of the exchanges of the same nature under section 1031.
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 commercial properties located primarily in high growth markets in the United States. The CTO also owns an approximate 16% interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net leasehold REIT.
We encourage you to review our most recent investor presentation, which is available on our website at www.ctoreit.com.
Certain statements 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. , as amended. Forward-looking statements can generally be identified by words such as “believe”, “estimate”, “expect”, “intend”, “anticipate”, “will”, “could”, “could”, “Should”, “,” potential “,” predict “,” foresee “,” project “and similar expressions, as well as variations or negatives of these words.
Although forward-looking statements are made on the basis of management’s current expectations and reasonable beliefs regarding future developments and their potential effect on the Company, a number of factors could cause the actual results of the Company to differ materially. those set forth in forward-looking statements. These factors may include, but are not limited to: the Company’s ability to continue to qualify as a REIT; the Company’s exposure to changes in US federal and state income tax laws, including changes in REIT requirements; generally unfavorable economic and real estate conditions; the geographic spread, severity and ultimate duration of pandemics such as the recent outbreak of the novel coronavirus, measures that can be taken by government authorities to contain or address the impact of these pandemics, and the potential negative impacts of these pandemics on the global economy and the Company’s financial condition and results of operations; the inability of major tenants to continue paying their rent or their obligations due to bankruptcy, insolvency or a general downturn in their business; the loss or failure, or decline of PINE’s business or assets; the completion of 1,031 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 year ended December 31, 2020 and other risks and uncertainties discussed from time to time in documents filed by the Company with the United States Securities and Exchange Commission.
There can be no assurance that future developments will be in line with management’s expectations or that the effects of future developments on the Company will be those 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 makes no commitment to update the information contained in this press release to reflect subsequent events or circumstances.
Matthew M. Partridge
Senior Vice-President, Chief Financial Officer and Treasurer