DAYTONA BEACH,FL—CTO Realty Growth has sold its Chase Bank ground lease located here forapproximately $6.7 million with an estimated gain of $1.9 million,after tax.
The deal reflects an exit caprate of approximately 4.15%. The property is currently under a17-year ground lease to Chase Bank. The proceeds are expected to bepart of a future Section 1031 like-kind exchange. With the closingof this transaction, CTO Realty Growth has more than $16.0 millionof proceeds held in 1031 restricted cash accounts.
Year to date, the company hascompleted the sale of three single-tenant net lease properties,generating sales proceeds of nearly $28 million, according toprepared remarks by CEO John P. Albright. This latest dispositionclosed "at a favorable exit cap rate," he added, and "will provideus with additional capital to reinvest into accretive incomeproducing properties utilizing the tax deferredstructure."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
