Benzinga | Dec 30, 2021 05:19PM EST

CTO Realty Growth Announces Acquisition Of Grocery-Anchored Retail Property In Atlanta, Georgia For $34M And Sale Of Downtown Daytona Beach Land Parcel For $6.3M

CTO Realty Growth, Inc. (NYSE:CTO) (the "Company" or "CTO") today announced it has acquired Phase I of The Exchange at Gwinnett, a grocery-anchored retail property in the Buford submarket of Atlanta, Georgia (the "Property") for $34.0 million. The purchase price represents a going-in cap rate within the range of the Company's guidance for initial cash yields. The Company also announced the sale of a vacant six-acre development land parcel in downtown Daytona Beach, Florida for $6.3 million.



"Phase I of The Exchange at Gwinnett is an excellent opportunity for us to acquire a high-quality, newly built grocery-anchored property in one of the region's fastest growing retail corridors and now makes Atlanta the largest market in our portfolio based on annualized base rent," said John P. Albright, President and Chief Executive Officer of CTO Realty Growth. "This the first Sprouts in our portfolio and the Property is part of the first walkable, mixed-use development near the super-regional Mall of Georgia owned by Simon Property Group. When combined with our previously announced acquisitions, we've now acquired $245 million of assets in 2021, positioning us for very attractive FFO and AFFO growth in 2022."

The Property is part of the larger 106-acre master-planned development project called The Exchange at Gwinnett being developed by Fuqua Development and equity partner Batson Cook Development Company, which is located at the intersection of I-85 and SR 20 in close proximity to the Mall of Georgia and just twenty miles northeast of the Company's Ashford Lane property. The Exchange at Gwinnett is planned to include more than 1,000 apartment, townhome and senior living units and approximately 465,000 square feet of retail, hotel and office, including newly opened entertainment anchors Top Golf and Andretti Racing, and a new 52,000-square-foot Rooms to Go.

The Property is approximately 69,000 square feet, 98% occupied, anchored by Sprouts Farmers Market and includes a diversified mix of national and local retailers and restaurants, including Starbucks, Chipotle Mexican Grill, Thrive Affordable Pet Care and Five Guys. As part of the Property acquisition, the Company has a negotiated right of first offer on the retail portion of Phase II of The Exchange at Gwinnett, which is anticipated to be 37,000 square feet of retail at completion.

The Company purchased the Property using available cash and availability under the Company's unsecured revolving credit facility.