Benzinga | Apr 6, 2021 04:16PM EDT

Alpine Income Property Trust Enters Into Agreements to Acquire Seven Properties From CTO Realty Growth for $56M

Alpine Income Property Trust, Inc. (NYSE:PINE) (the "Company") announced today it has entered two separate agreements to acquire seven retail net lease properties for a combined purchase price of $56.0 million (the "Acquisitions") from CTO Realty Growth, Inc. (NYSE:CTO).

"Since Alpine's IPO in 2019, we've highlighted the remaining single tenants net lease properties within CTO's portfolio as a potential source of future acquisitions for Alpine," said John P. Albright, President and Chief Executive Officer of Alpine Income Property Trust. "We are excited to announce these first two agreements with CTO, which we believe represent great opportunities for Alpine to efficiently acquire a number of properties that provide an attractive yield and excellent tenant, sector and geographic diversity to our already high-quality net lease portfolio."

The Acquisitions consist of a purchase and sale agreement to acquire a six-property portfolio (the "Six-Property Acquisition") and a separate purchase and sale agreement to acquire one property (the "Single-Property Acquisition").

The Six-Property Acquisition consists of properties net leased to leading national retailers such as Lowe's, Walgreens, Harris Teeter and Big Lots, with more than 60% of annualized base rent coming from properties leased to, or with leases guaranteed by, investment grade-rated entities.

All six of the properties in the Six-Property Acquisition are within metropolitan statistical areas ("MSA") that have populations over one million people, including locations in close proximity to Charlotte, NC; Seattle, WA; Washington, DC; Houston, TX; Phoenix, AZ; and Orlando, FL.

As part of the Six-Property Acquisition, the Company will be assuming an existing $30.0 million secured mortgage, which bears a fixed interest rate of 4.33% (the "Loan"). The Loan matures in October 2034 but is prepayable without penalty beginning in October 2024.

The Single-Property Acquisition is a property located in the Dallas-Fort Worth-Arlington, TX MSA, net leased to Burlington, and is expected to close in the second quarter of 2021.

The Acquisitions are subject to customary closing requirements and conditions, including but not limited to the various approvals related to the Six-Property Acquisition Loan assumption. As a result, the Company can give no assurance that the Acquisitions will be completed within a specific time period, or at all.