DAYTONA BEACH, FL—Consolidated-Tomoka Land Co. has invested $38.8 million in Alpine Income Property Trust, Inc., (PINE) and its affiliates, resulting in an ownership stake of approximately 22.3% through its investment in PINE's IPO and through the sale and contribution of a portfolio of 20 single-tenant net lease income properties.

The deal, for 15 of the 20 properties, resulted in the locally-based company receiving approximately $125.9 million, which it intends to redeploy in income property investments through the 1031 like-kind exchange structure.

Consolidated-Tomaka Land sold 20 of its single-tenant net lease income properties to PINE, including 15 properties sold for $125.9 million in cash and five properties contributed to PINE's operating partnership for 1,223,854 units, which can be exchanged for shares in PINE on a one-for-one basis. The value of the OP Units, based on PINE's price per share at its initial public offering of $19, is approximately $23.3 million.

The company invested $15.5 million in PINE through a direct investment of $8 million in shares issued as part of the IPO and the purchase of $7.5 million in PINE shares through a private placement investment that was concurrent with the IPO. Consolidated-Tomaka will be the external manager of PINE.

PINE also announced the closing of its IPO of 7,500,000 shares of common stock at a price of $19 per share. The company has granted the underwriters a 30-day option to purchase up to an additional 1,125,000 shares of common stock at the initial public offering price, less underwriting discounts and commissions. The company used approximately $125.9 million of the net proceeds of the offering to acquire, from Consolidated-Tomoka Land Co., 15 of the 20 properties in the company's initial portfolio.

The shares began trading on the New York Stock Exchange under the symbol "PINE" on November 22, 2019.

GlobeSt.com asked Consolidated-Tomaka to comment but did not hear back in time for deadline.

Instant Insights /

Consolidated-Tomoka Takes Stake in Alpine Income Property Trust

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