CTO Realty Growth Announces Acquisition of Lifestyle Center in Atlanta, Georgia for $79.8 Million
Rhea-AI Summary
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.
Positive
- 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
Negative
- High concentration risk: 82% of rent from 4 states
- Exposure to retail sector volatility
- Significant capital deployment in single asset ($79.8M)
News Market Reaction – CTO
In the trading session that priced this news, CTO declined 1.46%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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
