CTO Sells Two Non-Core Assets, Lands Anchor for The Grove at Winter Park
- Apr 12, 2016
Orlando–Consolidated-Tomoka Land Co. recently announced the disposition of two of its non-core income properties, along with the execution of a long-term lease with a national fitness center for the anchor space at The Grove at Winter Park retail center.
At the beginning of April, CTO sold two of its properties for a total of approximately $7.6 million. The property leased to American Signature Furniture in Daytona Beach, Fla., which had 3.8 years remaining on the lease, was sold for approximately $5.2 million. Located just south of Orlando in Sebring, Fla., the second property was leased to an affiliate of CVS and sub-leased to Advanced Auto Parts. The asset had roughly 3.1 years remaining on the lease and was sold for approximately $2.4 million.
The company intends to use the proceeds from the two sales as part of a 1031 exchange on a single-tenant office property in Raleigh, N.C., which is leased to Wells Fargo Bank.
“We are pleased to complete these dispositions enabling us to continue to improve the overall quality of our income property portfolio. With the completion of these dispositions we have approximately $20.8 million in restricted cash that upon the completion of the 1031 transaction related to the acquisition of the Raleigh property would become unrestricted, which we expect to occur in May 2016,” said John Albright, president & CEO of Consolidated-Tomoka.
CTO also entered into a 15-year lease with a national fitness center for the anchor space at The Grove at Winter Park, located in Winter Park, Fla. The lease is for 36 percent, or 40,000 square feet, of the 112,000-square-foot multi-tenant retail center. The firm has committed to fund customary tenant improvements for the fitness center, which is expected to open in the fourth quarter of 2016.
“Regarding the Grove at Winter Park, we are pleased to have signed a national fitness center tenant as an anchor tenant and we are currently in negotiations with other retailers for additional space as we continue our repositioning of this opportunistic investment,” added Albright.
Consolidated-Tomoka Land Co. is a Florida-based publicly traded real estate company, which owns a portfolio of income investments in diversified markets in the United States, including more than 1.6 million square feet of income properties, as well as approximately 10,500 acres of land in the Daytona Beach area.
Photo courtesy of The Grove at Winter Park.