DAYTONA BEACH, Fla., Oct. 11, 2018 (GLOBE NEWSWIRE) -- Consolidated-Tomoka Land Co. (NYSE American: CTO) (the “Company”) today announced the acquisition of the fee simple interest in eight (8) ground leases (the “Ground Leases”) adjacent to the St. Johns Town Center mall in Jacksonville, Florida, for approximately $32.3 million. The Ground Leases, situated on 10.45 acres, all have rent escalations during the initial term, most of which are every 5 years, and have a weighted-average remaining term of approximately 15 years. The initial investment yield is above the low end of the Company’s 2018 guidance. The transaction is expected to be part of a 1031 like-kind exchange associated with land sales and possibly the recycling of certain multi-tenant income properties.
As a result of the acquisition of the Ground Leases the Company’s income property portfolio has a total of 45 properties with aggregate net operating income of approximately $32.6 million, and a weighted average lease duration for the single-tenant income property portfolio of approximately 9.7 years. This acquisition further reflects the Company’s efforts to hone its investment focus toward single-tenant net-lease income properties.
The Ground Leases are located in the two newly developed retail centers, called “The Strand” and “The Crossing” bordering the 1.4 million square foot St. Johns Town Center mall that is home to over 150 tenants including Tiffany’s, Louis Vuitton, Tesla, Apple and Nordstrom. The Ground Leases are improved with eight (8) single-tenant net-lease retail properties, totaling approximately 44,000 square feet, with tenants including a Chase Bank, a WaWa, five national restaurant brands including Cheddar’s and Chuy’s, and a car wash.
About Consolidated-Tomoka Land Co.
Consolidated-Tomoka Land Co. is a Florida-based publicly traded real estate company, which owns more than 2.3 million square feet of income properties in diversified markets in the United States, as well as nearly 5,500 acres of land in the Daytona Beach area. Visit our website at www.ctlc.com.
