CTO Realty Growth (NYSE: CTO) has recently acquired Ashley Park, a 559,000-square-foot lifestyle center in Atlanta’s Newnan submarket, for $79.8 million. The acquisition represents a 12% increase in CTO’s total portfolio to 5.2 million square feet and aligns with the company’s strategy of focusing on high-quality, open-air shopping centers in growth markets. With Ashley Park’s strong anchor tenants, high occupancy rate of 93%, and strategic location attracting over 6 million visits annually, CTO sees potential for long-term value creation through strategic lease-up and rent adjustments. Additionally, approximately 82% of CTO’s annual base rent now comes from assets in Georgia, Florida, Texas, or North Carolina.
The acquisition offers multiple value creation opportunities for CTO, including the purchase price reflecting a high-end cap rate, acquisition below replacement cost, and potential income growth from below-market rents. With Dick’s Sporting Goods as the fifth largest tenant, Ashley Park’s solid fundamentals and prime location in Atlanta further enhance CTO’s operational synergies and market positioning.
Despite the concentration risk of 82% of rent coming from four states and exposure to retail sector volatility, CTO remains focused on disciplined capital allocation within its core strategy. The combination of favorable initial yield, value-add opportunities, and geographic concentration in high-growth markets positions the Ashley Park acquisition as an accretive transaction expected to boost CTO’s growth trajectory and income potential.
For further information, please visit CTO Realty Growth’s website for investor presentations and financial data. Contact Investor Relations at ir@ctoreit.com for any inquiries.
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