CTO Realty Growth Acquires Atlanta Retail Center for $80M

ATLANTA, GA – Publicly-traded REIT CTO Realty Growth Inc. has acquired a 162,500-square-foot, grocery-anchored retail property in Atlanta, GA for $80.2 million.

The acquired property, Madison Yards, is 98% occupied. The asset, which was constructed in 2019, is anchored by Publix and AMC Theatres, and is additionally tenanted by retailers and restaurants, such as AT&T, First Watch and Orangetheory Fitness.

“We are very excited to be increasing our presence in Atlanta with our acquisition of Madison Yards, fortifying it as our portfolio’s largest market and adding to our grocery-anchored property exposure,” states John P. Albright, CTO Realty Growth’s president and CEO.

Albright adds, “Atlanta has benefitted from sustained population growth and tremendous corporate investment in recent years, and Madison Yards is a terrific opportunity for us to invest in a high-quality, newly built grocery-anchored shopping center in an infill location along Atlanta’s Beltline at an attractive risk-adjusted yield.”

Situated on more than 10 acres of land in the city’s Inman Park/Reynoldstown submarket, Madison Yards is located two miles from Downtown Atlanta, along the Memorial Drive corridor.

The broader market corridor has had more than 2,000 multifamily units delivered during the past five years. The area has a population of 374,000 people within a five-mile radius and an average household income of more than $125,000.

The $80.2 million purchase price represents a going-in cap-rate below the range of CTO’s guidance for initial cash yields.

The property was purchased through a 1031 like-kind exchange, using $17.5 million of restricted cash generated from CTO’s previous property dispositions, available unrestricted cash, and draws from the firm’s unsecured revolving credit facility. The acquisition was structured as a reverse like-kind exchange in order to account for possible future dispositions of income properties by CTO.