2022-07-11 | NYSE: CTO | Press release
WINTER PARK, Fla., July 11. 10, 2022 (GLOBE NEWSWIRE) — CTO Realty Growth, Inc. (NYSE: CTO) (the “” Company or “CTO”) today announced the acquisition of Madison Yards, a 162,500 square foot property located in the Inman Park/Reynoldstown submarket along the Memorial Drive corridor of Atlanta, Georgia (the “Property””) for a purchase price of $80.2 million. The purchase price represents an initial capitalization rate below the range of the Company’s expectations for initial cash yields.
“We are very pleased to increase our presence in Atlanta with our acquisition of Madison Yards, to strengthen it as the largest market in our portfolio and to add to our property exposure rooted in grocery,” said John P. Albright, President and CEO of CTO Realty Growth. “Atlanta has benefited from steady population growth and tremendous corporate investment over the past few years, and Madison Yards is a tremendous opportunity for us to invest in a high-quality, newly constructed shopping center anchored in a grocery store in an infill location along Atlanta’s beltway at an attractive risk-adjusted return.”
Madison Yards was built in 2019, sits on over 10 acres just off Atlanta’s Beltline Eastside Trail, and is conveniently located just two miles from downtown Atlanta. The wider Market Corridor has seen over 2,000 multi-family units delivered in the past five years, including Greystar’s Elan Madison Yards project, and boasts excellent demographics with a population of 374,000 in five miles and an average household income of five thousand. over $125,000. The property is 98% occupied, anchored by Publix and AMC Theaters, features a well-designed mix of retailers and restaurants, including AT&T, First Watch and Orangetheory Fitness, and is the company’s first Publix-anchored center.
The property was purchased through a 1031-style exchange using $17.5 million of restricted cash generated from the company’s previously completed property dispositions, available unrestricted cash and drawdowns on the the Company’s unsecured revolving credit facility. The acquisition was structured as a reverse exchange of the same nature in order to take into account possible future disposals of productive properties by the Company.
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 higher growth markets in the United States. CTO also externally manages and owns a significant stake in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net leasehold REIT.
We encourage you to review our most recent investor presentation and additional financial information, which is available on our website at www.ctoreit.com.
Certain statements contained in this press release (other than statements of historical facts) 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,” “intent,” “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 made based on management’s current expectations and reasonable beliefs regarding future developments and their potential effect on the Company, a number of factors could cause the Company’s actual results to differ materially. of those set forth in the forward-looking statements. – look at the statements. These factors may include, but are not limited to: the ability of the Company to continue to qualify as a REIT; the company’s exposure to changes in US federal and state tax laws, including changes in REIT requirements; generally unfavorable economic and real estate conditions; 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 spread, severity and duration of pandemics such as the COVID-19 pandemic and its variants, measures that may be taken by government authorities to contain or deal with the impact of such pandemics, and the impacts potential adverse effects of these pandemics on the global economy and the Company’s financial condition and results of operations; the inability of major tenants to continue to pay rent or obligations due to bankruptcy, insolvency or a general downturn in business; the loss, failure or decline of PINE’s business or assets; 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 satisfaction of 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 United States Securities and Exchange. Commission.
There can be no assurance that future developments will meet 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.
Matthew M. Partridge
Senior Vice President, Chief Financial Officer and Treasurer