CTO Realty Growth Announces Acquisition of Palms Crossing for $81.6 Million
Rhea-AI Summary
CTO Realty Growth (NYSE: CTO) acquired Palms Crossing, a 399,000 sq ft open-air retail center in McAllen, Texas, for $81.6 million. The Property is 98% leased and anchored by Best Buy, Hobby Lobby, Burlington, Barnes & Noble and Nike.
Located on 47 acres with two pad sites (~6 acres) for future development, the purchase makes Texas CTO's third-largest state by annualized cash base rent and raises Cash ABR from Georgia, Florida, Texas and North Carolina to 85%. Initial funding is from cash and the revolving credit facility; a mid-2026 property sale is expected to retroactively fund the deal.
Positive
- $81.6M acquisition expands retail portfolio
- Adds 399,000 sq ft of open-air retail space
- Property is 98% leased to national anchors
- Two pad sites (~6 acres) for future development
- Texas becomes 3rd largest state by Cash ABR
Negative
- Initial funding uses cash and revolver, increasing short-term leverage
- Deal relies on a mid-2026 property sale to retroactively fund acquisition
- Geographic concentration: Cash ABR from four states rises to 85%
Key Figures
Market Reality Check
Peers on Argus
CTO slipped 0.26% while peers were mixed: OLP (-0.09%), GOOD (-1.42%), SAFE (-0.55%), AHH (+1.46%), GNL (+0.21%). Moves do not show a unified REIT trend.
Previous Acquisition Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 18 | Retail center acquisition | Positive | +2.5% | Acquisition of Pompano Citi Centre for <b>$65.2M</b> at high occupancy levels. |
| Mar 03 | Lifestyle center deal | Positive | -1.5% | Purchase of Ashley Park in Atlanta for <b>$79.8M</b>, boosting portfolio size. |
| Dec 17 | Grocery center acquisition | Positive | +0.1% | Acquisition of Granada Plaza for <b>$16.8M</b>, growing grocery-anchored mix. |
| Aug 21 | Portfolio acquisition | Positive | -0.2% | Three-center, <b>$137.5M</b> portfolio deal lifting square footage and base rent. |
| Mar 21 | Power center acquisition | Positive | +0.6% | Acquisition of 318,000 sq ft Orlando power center for <b>$68.7M</b>. |
Acquisition headlines have produced mixed but slightly positive reactions, with 3 aligned and 2 divergent moves and an average move of 0.33% over the last five events.
Over the past two years, CTO has repeatedly used acquisitions to expand its open-air shopping center portfolio in targeted markets like Florida, Georgia, Texas, and the Carolinas. Deals such as Pompano Citi Centre for $65.2M, Ashley Park for $79.8M, and a three-center portfolio for $137.5M increased both square footage and annual base rent. The Palms Crossing purchase for $81.6M continues this capital recycling strategy and further boosts exposure to Texas and core Sunbelt markets.
Historical Comparison
In the past 5 acquisition announcements, CTO’s average 1-day move was 0.33%. Today’s modest -0.26% reaction to the Palms Crossing deal sits within this historical range.
Acquisition history shows a steady build-out of open-air shopping centers across key Sunbelt markets, increasing portfolio square footage, annual base rent concentration in Georgia, Florida, Texas, and the Carolinas, and reinforcing CTO’s capital recycling approach.
Market Pulse Summary
This announcement highlights CTO’s continued expansion through the $81.6M acquisition of Palms Crossing, a 399,000 sq ft, 98%-leased open-air center in McAllen, Texas. The deal lifts Texas to the company’s third-largest state by Cash ABR and raises Georgia, Florida, Texas, and North Carolina to 85% of Cash ABR. Investors may watch how the asset is funded through cash, the revolving credit facility, and a planned mid-2026 property sale, alongside leasing performance and portfolio returns.
Key Terms
revolving credit facility financial
annualized cash base rent financial
reit regulatory
AI-generated analysis. Not financial advice.
WINTER PARK, Fla., March 02, 2026 (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 Palms Crossing (the “Property”), an open-air retail center consisting of 399,000 square feet for a purchase price of
Palms Crossing is currently
With this acquisition, Texas becomes the Company’s third largest state by annualized cash base rent (“Cash ABR”) and the percentage of Cash ABR from Georgia, Florida, Texas and North Carolina increases to
The Company plans to initially fund the acquisition with available cash and availability under our revolving credit facility. In mid-2026, we expect to sell a property with proceeds used to retroactively fund the Palms Crossing acquisition.
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), 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.
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 “outlook,” “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.
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, distress in the banking sector, global supply chain disruptions, and ongoing geopolitical war; credit risk associated with the Company investing in commercial loans and similarly structured investments; the ultimate geographic spread, severity and duration of pandemics such as the COVID-19 Pandemic and its variants, 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 or borrowers 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, 2025 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 did CTO announce on March 2, 2026 about the Palms Crossing acquisition?
How will the Palms Crossing purchase affect CTO's geographic exposure and Cash ABR?
How is CTO funding the $81.6 million Palms Crossing acquisition and what is the plan?
What are the leasing and development attributes of Palms Crossing acquired by CTO (NYSE: CTO)?
