CTO Realty Growth, Inc. has announced the closing of the sale of Eastern Commons, a 129,600 square foot community shopping center located in Henderson, Nevada. The Property was sold for US$18.2 million, representing an exit cap rate of 7.4 per cent and generating a gain on sale of approximately US$1.7 million.
“This transaction, which was our sole property in the Las Vegas market, was another positive step in our efforts to sell our smaller non-core properties. Similar to our other recent dispositions, we are selling non-core properties to pay down debt while we wait for larger format opportunities at attractive values,” said President and Chief Executive Officer of CTO Realty Growth, Inc., John P. Albright.
The Company anticipates utilizing the sales proceeds as part of a Section 1031 like-kind exchange (the “1031 Exchange”). Following the completion of the 1031 Exchange, the Company intends to use available proceeds to repay a portion of the outstanding balance under its revolving unsecured credit facility. With the closing of this transaction, the Company has approximately US$53.7 million of proceeds held in 1031 restricted cash accounts.