CTO Realty Growth Buys Retail Center for $70M

RALEIGH, NC – CTO Realty Growth Inc. has acquired a 320,600-square foot multi-tenant retail property in the Raleigh, NC suburb of Apex, NC for $70.5 million.

The acquired property, Beaver Creek Crossings, is situated across 51 acres of land and is located 15 minutes south of the nation’s largest research park, Research Triangle Park.

Constructed in 2005, the asset is 97% occupied and is anchored by TJ-Maxx, HomeGoods, Dick’s Sporting Goods, Regal Cinemas, Old Navy and Ross Dress for Less. The acquisition represents the firm’s first TJ-Maxx and HomeGoods-anchored shopping center.

The property includes four undeveloped outparcel pads for future development opportunities.

The $70.5 million purchase price represents a going-in cap rate within the range of the company’s guidance for initial cash yields.

CTO Realty Growth Inc. purchased the property through a 1031 like-kind exchange, using $66.7 million of restricted cash, generated from previously property dispositions, available cash and draws from the company’s unsecured revolving credit facility.

“We’re excited to be reentering the Raleigh, NC market with our acquisition of Beaver Creek Crossings,” says CTO Realty Growth’s president and CEO, John P. Albright. “Raleigh has experienced explosive growth in recent years as it benefits from unprecedented corporate investment, an abundance of well-performing technology and life science companies, a high quality of life, and a highly educated workforce. Coupled with these market dynamics, the property’s strong tenant lineup, centralized location in one of the area’s most trafficked retail corridors, and future outparcel development upside makes Beaver Creek Crossings a high-quality addition to our growing portfolio. This acquisition completes the accretive redeployment of our office disposition proceeds and further positions our portfolio into high-quality, multi-tenanted retail and mixed-use properties.”