CTO Realty Growth Announces Acquisition Of Grocery-Anchored Retail Property In Atlanta, Georgia For US$80.2 Million
By Godson Umejiego, Senior Correspondent, USA
CTO Realty Growth, Inc. has announced it has acquired Madison Yards, a 162,500 square foot property located in the Inman Park/Reynoldstown submarket along the Memorial Drive corridor of Atlanta, Georgia for a purchase price of US$80.2 million. The purchase price represents a going-in cap rate below the range of the Company’s guidance for initial cash yields.
“We are very excited to be increasing our presence in Atlanta with our acquisition of Madison Yards, fortifying it as our portfolio’s largest market and adding to our grocery-anchored property exposure,” said President and Chief Executive Officer of CTO Realty Growth, John P. Albright. “Atlanta has benefitted from sustained population growth and tremendous corporate investment in recent years, and Madison Yards is a terrific opportunity for us to invest in a high-quality, newly built grocery-anchored shopping center in an infill location along Atlanta’s Beltline at an attractive risk-adjusted yield.”
Madison Yards was constructed in 2019, sits on more than 10 acres right off Atlanta’s Beltline Eastside Trail and is conveniently located just two miles from Downtown Atlanta. The broader market corridor has seen more than 2,000 multi-family units delivered in the last five years, including Greystar’s Elan Madison Yards project, and benefits from excellent demographics with a five-mile population of 374,000 and five-mile average household incomes of more than US$125,000. The Property is 98 per cent occupied, anchored by Publix and AMC Theatres, includes a well-crafted mix of retailers and restaurants, including AT&T, First Watch, and Orangetheory Fitness, and is the Company’s first Publix-anchored center.
The Property was purchased through a 1031 like-kind exchange using US$17.5 million of restricted cash generated from the Company’s previously completed property dispositions, 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.
