DAYTONA BEACH, Fla.--(BUSINESS WIRE)--Consolidated-Tomoka Land Co. (NYSE MKT:CTO) announced the acquisition of an approximately 22,500 square foot retail building in the metropolitan Boston, Massachusetts area (the “Property”) for $6.3 million at a 7.1% cap rate. The Property is situated on approximately 2.6 acres and is 100% leased to Jo-Ann Stores, Inc. under a triple-net lease. As part of the transaction, the Company negotiated an early lease extension with Jo-Ann to extend the lease term by an additional ten years. As a result of the extension, the remaining lease term is approximately 12 years. The Property was built in 2009 as a build-to-suit for Jo-Ann and is located in Saugus, MA within 15 miles of downtown Boston, MA. The average population and average annual household income within 3-miles of the Property are 111,000 and $94,000, respectively.
The Property was purchased using the remaining proceeds from the $27.2 million sale of approximately 1,581 acres to Minto Communities, as well as, the majority of the proceeds from the recently-announced $3.2 million sale of approximately 28 acres to VanTrust Real Estate, LLC. As a result of this acquisition, the Company has re-invested 100% of the proceeds from the Minto sale utilizing the 1031 like-kind exchange strategy.
The Company issued the following statement:
The property represents a new tenant and a major new market for the Company’s income property portfolio and has outstanding demographics that will further strengthen the demographic profile of the Company’s existing portfolio. With this acquisition, the Company’s single-tenant portfolio has a weighted-average remaining lease term of approximately 9.2years. This acquisition brings the Company’s total 2017 income property acquisitions to approximately $25 million with a weighted-average cap rate of approximately 6.63%.
About Consolidated-Tomoka Land Co.
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 approximately 1.9 million square feet of income properties, as well as approximately 8,200 acres of land in the Daytona Beach area. Visit our website at www.ctlc.com.
We encourage you to review our most recent investor presentations for year end 2016 pertaining to the results for the quarter and year ended December 31, 2016, available on our website at www.ctlc.com.
