CTO Realty Growth Announces Sale Of Single Tenant Office Property In Tampa, FL For $22M

Author: Benzinga Newsdesk | December 20, 2023 05:19pm

CTO Realty Growth, Inc. (NYSE:CTO) (the "Company" or "CTO") today announced the closing of the sale of Sabal Pavilion, a 120,500 square foot single tenant office property located in Tampa, Florida (the "Property"). The Property was sold for $22.0 million, resulting in a loss on sale of approximately $0.7 million. In connection with the Property sale, CTO provided a $15.4 million first mortgage to the buyer at a fixed interest rate of 7.5%, with a term of 179 days.

 

Year-to-date, the Company has sold nine properties for total disposition volume of $87.1 million at a weighted average exit cap rate of 7.5%, generating gains on sales of $6.3 million.

"We've made good progress with asset sales over the past few months, and with this most recent office sale, we've now accretively sold nearly all of our legacy office exposure," said John P. Albright, President and Chief Executive Officer of CTO Realty Growth, Inc. "As we look forward to 2024, we are well-positioned to complete our non-core property disposition program and opportunistically reinvest these proceeds into higher growth, larger format retail and mixed-use properties."

The Company expects to utilize 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 $6.9 million of proceeds held in 1031 restricted cash accounts.

Posted In: CTO