Consolidated Tomoka Announces Acquisition of Crossroads Towne Center, a 254,000 Square Foot Retail Center, in Chandler, Arizona for $61.8 Million
January 24, 2020 at 05:53 pm EST
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Consolidated-Tomoka Land Co. announced the purchase of Crossroads Towne Center, an approximately 254,000 square foot retail center in Chandler, Arizona, for $61.8 million, representing a going-in cap rate of approximately 7.85%. Crossroads, located in the Phoenix MSA, is approximately 11 miles from Tempe and is 99% occupied. Crossroads is anchored by Home Depot and Wal-Mart, two properties that were not part of the Company’s acquisition, as well as a 12-screen Harkins Theatre and Bob’s Discount Furniture. Also included are multiple outparcels leased to tenants including, but not limited to, Chick-fil-A, JPMorgan Chase and Olive Garden. Additionally, Crossroads is located directly across the SanTan Freeway from Rivulon, the 250-acre mixed use development anchored by Deloitte. The weighted average lease term for the leases of all 32 tenants at Crossroads is approximately 5 years. Crossroads will be managed by Vestar and leased by JLL on behalf of the company. This acquisition was purchased using the remaining 1031 like-kind exchange proceeds from the company’s October 2019 transaction with Magnetar Capital representing the sale of a controlling interest in the company’s remaining land portfolio for $97 million and a portion of the 1031 like-kind exchange proceeds from the sale of 20 assets to Alpine Income Property Trust in November 2019 (the “PINE Proceeds”). The company anticipates reinvesting the remaining PINE Proceeds of approximately $64 million in the first quarter of 2020.
CTO Realty Growth, Inc. is a real estate investment trust that owns and operates a portfolio of retail-based properties located primarily in higher growth markets in the United States. The Company operates in four primary business segments: management services, commercial loans and investments, real estate operations, and income properties. The management services segment is a fee-based management business that is engaged in managing Alpine Income Property Trust, Inc. (PINE). The commercial loans and investments segment includes a portfolio of three commercial loan investments and one preferred equity investment, which is classified as a commercial loan investment. The real estate operations segment includes a portfolio of subsurface mineral interests associated with approximately 352,000 surface acres in 19 counties in the State of Florida and an inventory of mitigation credits. The Companyâs business also includes its investment in PINE.