CTO Realty Growth Announces Acquisition of Lifestyle Center in Atlanta, Georgia for $79.8 Million
CTO Realty Growth (NYSE: CTO) has acquired Ashley Park, a 559,000-square-foot lifestyle center in Atlanta's Newnan submarket, for $79.8 million. The purchase represents a high-end cap rate within the company's current guidance range for initial cash yields.
The acquisition increases CTO's total portfolio by 12% to 5.2 million square feet. The property is 93% occupied and anchored by major retailers including Dick's Sporting Goods, Best Buy, Barnes & Noble, Regal, and Dillard's. Located along I-85 south of Hartsfield-Jackson Airport, the 60-acre center attracts over 6 million visits annually.
Following this acquisition, approximately 82% of CTO's annual base rent now comes from assets in Georgia, Florida, Texas, or North Carolina. The company sees potential for long-term value creation through strategic lease-up and mark-to-market rent opportunities, as the property was acquired below replacement cost with below-market rents.
CTO Realty Growth (NYSE: CTO) ha acquisito Ashley Park, un centro commerciale lifestyle di 559.000 piedi quadrati nel submercato di Newnan ad Atlanta, per 79,8 milioni di dollari. L'acquisto rappresenta un tasso di capitalizzazione di alto livello all'interno dell'attuale intervallo di guida dell'azienda per i rendimenti iniziali in contante.
L'acquisizione aumenta il portafoglio totale di CTO del 12% a 5,2 milioni di piedi quadrati. La proprietà è occupata al 93% ed è ancorata da importanti rivenditori tra cui Dick's Sporting Goods, Best Buy, Barnes & Noble, Regal e Dillard's. Situato lungo l'I-85 a sud dell'aeroporto Hartsfield-Jackson, il centro di 60 acri attrae oltre 6 milioni di visite annuali.
Dopo questa acquisizione, circa l'82% dell'affitto base annuale di CTO proviene ora da beni in Georgia, Florida, Texas o Carolina del Nord. L'azienda vede potenziali opportunità di creazione di valore a lungo termine attraverso l'affitto strategico e le opportunità di adeguamento dei canoni, poiché la proprietà è stata acquisita al di sotto del costo di sostituzione con canoni inferiori al mercato.
CTO Realty Growth (NYSE: CTO) ha adquirido Ashley Park, un centro comercial de estilo de vida de 559,000 pies cuadrados en el submercado de Newnan en Atlanta, por 79.8 millones de dólares. La compra representa una tasa de capitalización de alto nivel dentro del rango actual de orientación de la compañía para los rendimientos iniciales en efectivo.
La adquisición aumenta el portafolio total de CTO en un 12% a 5.2 millones de pies cuadrados. La propiedad está ocupada al 93% y cuenta con importantes minoristas, incluyendo Dick's Sporting Goods, Best Buy, Barnes & Noble, Regal y Dillard's. Ubicado a lo largo de la I-85 al sur del Aeropuerto Hartsfield-Jackson, el centro de 60 acres atrae más de 6 millones de visitas anuales.
Después de esta adquisición, aproximadamente el 82% del alquiler base anual de CTO proviene ahora de activos en Georgia, Florida, Texas o Carolina del Norte. La empresa ve potencial para la creación de valor a largo plazo a través de arrendamientos estratégicos y oportunidades de ajuste de mercado, ya que la propiedad fue adquirida por debajo del costo de reemplazo con alquileres por debajo del mercado.
CTO Realty Growth (NYSE: CTO)는 애슐리 파크(Ashley Park)를 인수했습니다. 애슐리 파크는 애틀랜타의 뉴난(Newnan) 서브마켓에 위치한 559,000 평방피트 규모의 라이프스타일 센터로, 7,980만 달러에 인수되었습니다. 이번 구매는 회사의 초기 현금 수익률에 대한 현재 안내 범위 내에서 높은 수준의 자본화율을 나타냅니다.
이번 인수로 CTO의 총 포트폴리오가 12% 증가하여 520만 평방피트에 이릅니다. 이 부동산은 93%가 점유되어 있으며, Dick's Sporting Goods, Best Buy, Barnes & Noble, Regal, Dillard's와 같은 주요 소매업체들이 입점해 있습니다. Hartsfield-Jackson 공항 남쪽의 I-85를 따라 위치한 이 60에이커 규모의 센터는 매년 600만 회 이상의 방문객을 끌어모읍니다.
이번 인수 이후, CTO의 연간 기본 임대료 중 약 82%가 조지아, 플로리다, 텍사스 또는 노스캐롤라이나의 자산에서 발생하고 있습니다. 회사는 전략적인 임대와 시장 가격 조정 기회를 통해 장기적인 가치 창출의 잠재력을 보고 있으며, 이 자산은 교체 비용 이하로 인수되었고 시장 가격 이하의 임대료로 운영되고 있습니다.
CTO Realty Growth (NYSE: CTO) a acquis un centre de style de vie de 559 000 pieds carrés, Ashley Park, situé dans le sous-marché de Newnan à Atlanta, pour 79,8 millions de dollars. Cet achat représente un taux de capitalisation élevé dans la fourchette actuelle de prévisions de l'entreprise pour les rendements en espèces initiaux.
L'acquisition augmente le portefeuille total de CTO de 12% à 5,2 millions de pieds carrés. La propriété est occupée à 93% et est ancrée par de grands détaillants tels que Dick's Sporting Goods, Best Buy, Barnes & Noble, Regal et Dillard's. Situé le long de l'I-85 au sud de l'aéroport Hartsfield-Jackson, le centre de 60 acres attire plus de 6 millions de visites par an.
Suite à cette acquisition, environ 82% du loyer de base annuel de CTO provient désormais d'actifs en Géorgie, en Floride, au Texas ou en Caroline du Nord. L'entreprise voit un potentiel de création de valeur à long terme grâce à des opportunités de location stratégique et de mise à jour des loyers, car la propriété a été acquise en dessous du coût de remplacement avec des loyers inférieurs au marché.
CTO Realty Growth (NYSE: CTO) hat Ashley Park, ein 559.000 Quadratfuß großes Lifestyle-Center im Submarkt Newnan in Atlanta, für 79,8 Millionen Dollar erworben. Der Kauf stellt eine hochgradige Kapitalisierungsrate innerhalb des aktuellen Richtlinienbereichs des Unternehmens für anfängliche Barerträge dar.
Durch die Akquisition erhöht sich das Gesamtportfolio von CTO um 12% auf 5,2 Millionen Quadratfuß. Die Immobilie ist zu 93% ausgelastet und wird von großen Einzelhändlern wie Dick's Sporting Goods, Best Buy, Barnes & Noble, Regal und Dillard's unterstützt. Das 60 Hektar große Center, das entlang der I-85 südlich des Hartsfield-Jackson Flughafens liegt, zieht jährlich über 6 Millionen Besuche an.
Nach dieser Akquisition stammen etwa 82% der jährlichen Grundmiete von CTO jetzt aus Vermögenswerten in Georgia, Florida, Texas oder North Carolina. Das Unternehmen sieht Potenzial für langfristige Wertschöpfung durch strategische Miet- und Marktmietchancen, da die Immobilie unterhalb der Wiederbeschaffungskosten und zu untermarktkonformen Mieten erworben wurde.
- Portfolio expansion: 12% increase to 5.2M sq ft
- High occupancy rate of 93%
- Strong anchor tenants including Dick's Sporting Goods
- Strategic location with 6M+ annual visits
- Below replacement cost acquisition with upside potential
- Geographic concentration in high-growth markets
- High concentration risk: 82% of rent from 4 states
- Exposure to retail sector volatility
- Significant capital deployment in single asset ($79.8M)
Insights
CTO Realty Growth's $79.8 million acquisition of Ashley Park represents a 12% expansion of their total portfolio to 5.2 million square feet. This strategic move aligns perfectly with their focus on high-quality, open-air shopping centers in growth markets, while strengthening their geographic concentration with 82% of annual base rent now derived from Georgia, Florida, Texas, and North Carolina.
The transaction offers multiple value creation opportunities. First, management indicates the purchase represents a cap rate "near the high end" of their guidance range, suggesting attractive initial cash yield. Second, acquiring below replacement cost provides intrinsic value protection. Third, the property's below-market rents create potential for income growth through strategic lease-up and rent mark-to-market strategies.
With 93% occupancy and strong anchor tenants including Dick's Sporting Goods, Best Buy, Barnes & Noble, Regal, and Dillard's, the lifestyle center demonstrates solid fundamentals. The property's location in Atlanta, already CTO's largest market, enables operational synergies through local management leverage.
This acquisition reflects disciplined capital allocation within CTO's core strategy while providing meaningful scale enhancement. The combination of favorable initial yield, value-add opportunities, and strategic market positioning makes this an accretive transaction that should positively impact CTO's growth trajectory and income potential.
WINTER PARK, Fla., March 03, 2025 (GLOBE NEWSWIRE) -- CTO Realty Growth, Inc. (NYSE: CTO) (the “Company” or “CTO”), a leading owner and operator of high-quality, open-air shopping centers located in the higher growth Southeast and Southwest markets of the United States, today announced the acquisition of Ashley Park (the “Property”), a 559,000-square-foot, 60-acre, lifestyle center in the Newnan submarket of Atlanta, Georgia for a purchase price of
"This acquisition enhances our portfolio by adding another lifestyle shopping center in Atlanta, our largest market, while leveraging our local personnel to drive operational synergies. Further, approximately
The Property is anchored by Dick’s Sporting Goods, Best Buy, Barnes & Noble, Regal and Dillard’s, and is currently
About CTO Realty Growth, Inc.
CTO Realty Growth, Inc. owns and operates high-quality, open-air shopping centers located in the higher growth Southeast and Southwest markets of the United States. CTO also externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE).
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, as amended. Forward-looking statements can typically 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. Examples of forward-looking statements in this press release include, without limitation, statements regarding the Company’s acquisition of the Property below replacement cost with below-market rents, providing an opportunity to unlock long-term value through strategic lease-up and mark-to-market rent opportunities.
Although forward-looking statements are made based upon management’s present expectations and beliefs concerning future developments and their potential effect upon the Company, a number of factors could cause the Company’s actual results to differ materially from those set forth in the 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 U.S. federal and state income tax law changes, including changes to the REIT requirements; general adverse economic and real estate conditions; macroeconomic and geopolitical factors, including but not limited to inflationary pressures, interest rate volatility, tariffs, distress in the banking sector, global supply chain disruptions, and ongoing geopolitical war; credit risk associated with the Company investing in structured investments; the ultimate geographic spread, severity and duration of pandemics, actions that may be taken by governmental authorities to contain or address the impact of such pandemics, and the potential negative impacts of such 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 obligations due to bankruptcy, insolvency or a general downturn in their business; the loss or failure, or decline in the business or assets of PINE; the completion of 1031 exchange transactions; the availability of investment properties that meet the Company’s investment goals and criteria; the uncertainties associated with obtaining required governmental permits and satisfying 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, 2024 and other risks and uncertainties discussed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission.
There can be no assurance that future developments will be in accordance with management’s expectations or that the effect 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 undertakes no obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances.
Contact:
Investor Relations
ir@ctoreit.com
FAQ
What is the purchase price and size of CTO's Ashley Park acquisition in Atlanta?
What is the current occupancy rate of Ashley Park and who are its anchor tenants?
How does the Ashley Park acquisition impact CTO's portfolio composition?
What growth opportunities does CTO identify in the Ashley Park acquisition?
