CTO Realty Growth Buys Atlanta Lifestyle Center for $96M
The Collection at Forsyth exchanged hands in a reverse like-kind exchange.
CTO Realty Growth has acquired The Collection at Forsyth, a 560,000 square foot lifestyle, mixed-use property in the Forsyth County submarket of Atlanta, Georgia for $96 million. The purchase price represents a going-in cap rate above the range of the company’s current guidance for initial cash yields.
The Collection at Forsyth sits on more than 57 acres in one of Atlanta’s most affluent submarkets in Forsyth County. Built in 2008, the property houses a mix of national and local tenants, including Academy Sports, AMC Theatres, Children’s Healthcare of Atlanta, Ted’s Montana Grill, DSW and Barnes & Noble, with several development projects planned for the surrounding area. The property is just over 80% leased and serves an area that includes a 5-mile population over 146,000 people with 5-mile average household incomes of more than $172,000.
The property was purchased using proceeds from the company’s recent equity offering, available unrestricted cash, and draws from the company’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 the company.