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 sq. ft., mixed-use, grocery-anchored lifestyle property in the Short Pump submarket of Richmond, Virginia (the “Property”) for a purchase price of $93.9 million. The purchase price represents an entry rate above the company’s current guidance range for initial cash returns.
“We are very pleased to add to our exposure to grocery-based assets with our acquisition of West Broad Village, our first lifestyle property anchored by Whole Foods and REI,” said John P. Albright , president and CEO of CTO Realty. growth “With future leasing opportunities to drive attractive stabilized cash flows, strong supporting demographics and Richmond’s high quality of life, business-friendly policies and steady population growth, West Broad Village represents an opportunity great for investing in a dominant grocery-anchored lifestyle property with long-term upside.”
West Broad Village was developed on 32.6 hectares in phases between 2007 and 2014 and is surrounded by a mix of high-end residential, hospitality and office properties. Prominently located on West Broad Street within the area’s leading commercial corridor and adjacent to I-64 and the I-295 interchange, the property has an expanded commercial zone that allows it to benefit from a median household income of five miles 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 office space and includes an attractive mix of national and local tenants spanning grocery, food and beverage, entertainment, education, home decoration, childcare and medical sectors.
The property was purchased through a similar 1031 exchange using $35.0 million of restricted cash generated from the Company’s previously completed property dispositions, unrestricted available cash and drawings from the revolving credit facility not guaranteed by the company. The acquisition has been structured as a reverse like-kind exchange in order to account for potential future dispositions of income 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 high-growth markets in the United States. CTO also externally manages and has 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.
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 , modified. Forward-looking statements can typically be identified by words such as “believe,” “estimate,” “expect,” “attempt,” “anticipate,” “will,” “could,” “could,” “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, various 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 maintain qualification as a REIT; the Company’s exposure to changes in US federal and state income tax laws, including changes to REIT requirements; general adverse 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, the actions that governmental authorities may take to contain or deal with the impact of such pandemics, and the possible negative impacts of these pandemics on a global scale. the economy and financial condition and results of operations of the company; the inability of major tenants to continue to pay their rent or obligations due to bankruptcy, insolvency or a general decline in their business; the loss or failure, or diminution of PINE’s business or assets; the completion of 1031 exchange transactions; the availability of investment properties that meet the company’s investment objectives and criteria; uncertainties associated with obtaining required governmental 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 filings of the company to the US 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 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 assumes no obligation to update the information contained in this press release to reflect events or circumstances that occur subsequently.
Mateu M. Lose
Senior Vice President, Chief Financial Officer and Treasurer