CTO Realty Growth, Inc. (CTO Quick QuoteCTO - Free Report) recently announced the acquisition of Marketplace at Seminole Towne Center, a premier retail destination in the Sanford submarket of Orlando, FL. The purchase of this 318,000-square-foot multi-tenant retail power center was made for $68.7 million, and the move aligns with the company's strategy to enhance its presence in high-growth markets.

Strategically located on 41 acres along I-4 and SR 417, Seminole Towne Center benefits from its proximity to downtown Orlando and strong community ties. The property enjoys a 98% occupancy rate and boasts a diverse mix of tenants. Particularly, it is anchored by Burlington (BURL Quick QuoteBURL - Free Report) , Marshalls of TJX Companies (TJX Quick QuoteTJX - Free Report) , Ross Dress for Less (ROST Quick QuoteROST - Free Report) , Ulta Beauty and Five Below, among others. This ensures a stable rental income stream.

Its location within the Orlando Metropolitan Statistical Area, a top-ranked market per The Urban Land Institute, positions it well for long-term value creation. With a three-mile population of more than 60,000 and an average household income of approximately $118,000, this property acquisition seems a strategic buy for CTO Realty Growth with significant growth potential. With this move, Orlando has now emerged as the company’s fourth-largest market.

John P. Albright, the president and CEO of CTO Realty Growth, Inc., highlighted the strategic importance of this acquisition, stating, "This dominant, Target shadow-anchored center allows us to increase our exposure to the high-growth Orlando market and existing top tenants such as Ross Dress for Less, TJX Companies, and Burlington.”

Further, he noted that “Seminole Towne Center provides a stable income stream and growth potential, and due to its prime location and strong community ties, we see attractive potential upside from below-market rents. We believe we acquired the property below replacement cost.”

The property was purchased through a 1031 like-kind exchange using $24.1 million of restricted cash generated from the company’s prior completed property dispositions. Also, CTO used available cash and draws from its unsecured revolving credit facility. A portion of the acquisition was structured as a reverse-like-kind exchange. This financing approach underscores the company’s strategy of prudent financial management while pursuing growth opportunities.

Recently, CTO Realty Growth disclosed its leasing accomplishments for the year-to-date period, signifying healthy growth and promising prospects in the retail real estate sector.

CTO unveiled its leasing achievements from the beginning of the year through Mar 11, which include the signing of 16 leases totaling an impressive 112,480 square feet at an average cash base rent of $27.49 per square foot.

Particularly noteworthy is the company's substantial comparable growth, evidenced by the signing of 12 leases totaling 103,065 square feet at an average cash base rent of $26.58 per square foot. This represents a staggering 89% increase compared to the previous average cash base rent, highlighting CTO's adeptness in enhancing value across its portfolio.

Moreover, the company's expansion endeavors have been evident in its recent openings, including Politan Row and Culinary Dropout at Ashford Lane in Atlanta, GA, Ainsworth at Shops of Legacy in Plano, TX, and Fogo de Chão at West Broad Village in Richmond, VA. These strategic moves align with CTO's commitment to curating vibrant retail destinations in high-growth markets across the United States.