CTO Realty Growth sells Santa Fe property for $20 million By Investing.com

WINTER PARK, Fla. – CTO Realty Growth, Inc. (NYSE: CTO), a real estate investment trust, has completed the sale of a mixed-use property in downtown Santa Fe, New Mexico. The transaction, which closed on Monday, involved a property comprising approximately 136,000 square feet and sold for $20.0 million.

The sale aligns with the company’s strategic disposition plan, yielding a gain of approximately $4.6 million. The exit cap rate is consistent with CTO’s current guidance for disposition cash yields. This move is part of CTO’s broader effort to divest smaller, non-core assets and reduce legacy office exposure, according to John P. Albright, President and CEO of CTO Realty Growth.

The proceeds from the sale are earmarked for the purchase of a core power center in the Orlando Metropolitan Statistical Area (MSA), with an expected closing in the first quarter of 2024. The company plans to use the sales proceeds as part of a Section 1031 like-kind exchange, which allows for the deferral of capital gains taxes on the sale of investment properties.

Following the 1031 Exchange, CTO intends to use any remaining proceeds to repay a portion of its outstanding balance on a revolving unsecured credit facility or to fund future acquisitions. The company now holds approximately $30.7 million in proceeds in restricted cash accounts dedicated to 1031 exchanges.

CTO Realty Growth, Inc. owns and operates a portfolio of retail-based properties, primarily in high-growth markets across the United States. It also holds a significant interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net lease REIT.

This sale comes at a time when the real estate market is adjusting to various macroeconomic factors, including interest rate fluctuations and supply chain disruptions. CTO’s strategic asset reallocation is indicative of its adaptive management in a changing economic landscape.

The information in this article is based on a press release statement from CTO Realty Growth, Inc.

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