CTO Realty Sells Bank Ground Lease in Jacksonville
The property is currently under a 17-year ground lease to Chase Bank.
DAYTONA BEACH, FL—CTO Realty Growth has sold its Chase Bank ground lease located here for approximately $6.7 million with an estimated gain of $1.9 million, after tax.
The deal reflects an exit cap rate of approximately 4.15%. The property is currently under a 17-year ground lease to Chase Bank. The proceeds are expected to be part of a future Section 1031 like-kind exchange. With the closing of this transaction, CTO Realty Growth has more than $16.0 million of proceeds held in 1031 restricted cash accounts.
Year to date, the company has completed the sale of three single-tenant net lease properties, generating sales proceeds of nearly $28 million, according to prepared remarks by CEO John P. Albright. This latest disposition closed “at a favorable exit cap rate,” he added, and “will provide us with additional capital to reinvest into accretive income producing properties utilizing the tax deferred structure.”
The company was advised by Stream Capital Partners on the transaction.
A publicly traded real estate company, CTO Realty Growth owns 2.3 million square feet of income properties across the US and an approximately 22% interest in Alpine Income Property Trust, Inc., a publicly traded net lease REIT.