CTO Realty Growth (NYSE: CTO) has recently acquired Ashley Park, a large lifestyle shopping center in Newnan, Atlanta. The deal was worth $79.8 million. This purchase boosts CTO’s portfolio by 12%, bringing their total to 5.2 million square feet.
Ashley Park is 93% occupied. It features popular stores like Dick’s Sporting Goods, Best Buy, Barnes & Noble, Regal, and Dillard’s. Located near I-85 and south of Hartsfield-Jackson Airport, the site attracts over 6 million visitors annually.
Following this acquisition, about 82% of CTO’s annual base rent comes from properties in Georgia, Florida, Texas, and North Carolina. The company aims to increase value through strategic leasing and potentially adjusting below-market rents.
Positive
- Portfolio grows by 12% to 5.2M sq ft
- High occupancy rate of 93%
- Strong anchor tenants enhance stability
- Prime location draws over 6M visitors yearly
- Investment below replacement cost offers potential
- Focus on high-growth markets
Negative
- Risk of high concentration: 82% rent from just four states
- Vulnerability to retail market changes
- Large investment in one property ($79.8M)
Insights
CTO Realty Growth’s $79.8 million purchase of Ashley Park marks a 12% increase in their portfolio. This move emphasizes their strategy of investing in high-quality shopping centers in thriving markets. With 82% of their rent now generated from properties in Georgia, Florida, Texas, and North Carolina, they are strategically positioned for growth.
This acquisition presents several opportunities. The purchase price reflects a favorable cap rate, and because it was acquired below replacement cost, it offers solid value protection. Furthermore, the existing below-market rents could lead to increased income through strategic leasing plans.
Ashley Park’s 93% occupancy and notable tenants support its strong market presence. Situated in Atlanta, CTO can leverage local management for operational benefits.
In summary, this acquisition aligns well with CTO’s strategy and is expected to enhance their growth and income potential significantly.
WINTER PARK, Fla., March 03, 2025 (GLOBE NEWSWIRE) — CTO Realty Growth, Inc. (NYSE: CTO), a key player in operating high-quality shopping centers, announced its acquisition of Ashley Park, a lifestyle center in Newnan, Atlanta. The deal was valued at
“This acquisition boosts our portfolio with another lifestyle center in our largest market. About
Ashley Park is home to tenants like Dick’s Sporting Goods, Best Buy, Barnes & Noble, Regal, and Dillard’s, and currently stands at
FAQ
What is the purchase price and size of CTO’s Ashley Park acquisition?
CTO acquired Ashley Park for $79.8 million. The property spans 559,000 square feet and is located in Atlanta’s Newnan submarket.
What is Ashley Park’s current occupancy rate and who are its anchor tenants?
The center is 93% occupied and features anchor tenants like Dick’s Sporting Goods, Best Buy, Barnes & Noble, Regal, and Dillard’s.
How does the Ashley Park acquisition affect CTO’s portfolio?
This acquisition increases CTO’s total portfolio by 12%, totaling 5.2 million square feet, and shifts 82% of annual base rent from properties in Georgia, Florida, Texas, and North Carolina.
What growth opportunities does CTO see in this acquisition?
By acquiring Ashley Park below replacement cost and benefiting from below-market rents, CTO can utilize strategic leasing and market adjustments to drive long-term value.
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CTO, Ashley Park acquisition, lifestyle center investment, Atlanta commercial real estate, Newnan retail property, below replacement cost, value-add real estate, REIT expansion, retail anchor tenants, Georgia commercial property
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