CTO Realty divests Shops at Legacy North for $78 million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 19 2025
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Source: SeekingAlpha
Sale of Mixed-Use Center: CTO Realty Growth sold a 243,000-square-foot mixed-use lifestyle center in Dallas for $78 million, achieving a price of $321 per square foot.
Capital Recycling Strategy: The sale, completed at a low-5% exit cash cap rate, allows CTO to reinvest in higher-yielding opportunities, including the recent acquisition of Pompano Citi Centre.
Use of Proceeds: Net proceeds from the sale will be utilized for a Section 1031 like-kind exchange to fund the Pompano Citi Centre acquisition, with additional funds allocated for future investments.
Year-to-Date Disposition Volume: CTO Realty Growth's total disposition volume for the year reached $85.1 million, with a weighted average exit cash cap rate in the mid-5% range.
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About CTO
CTO Realty Growth, Inc. is a real estate investment trust that owns and operates a portfolio of retail-based properties located primarily in the United States. The Company’s segments include income properties, management services, commercial loans and investments, and real estate operations. The management services segment is a fee-based management business that is engaged in managing Alpine Income Property Trust, Inc. (PINE). The commercial loans and investments segment includes a portfolio of five commercial loan investments and two preferred equity investments, which are classified as commercial loan investments. Its income property operations consist of income-producing properties. Its business also includes its investment in PINE. Its portfolio of properties includes Carolina Pavilion, Millenia Crossing, Lake Brandon Village, Crabby's Oceanside, Fidelity, LandShark Bar & Grill, Granada Plaza, The Strand at St. Johns Town Center, Price Plaza, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CTO Realty Growth Reports $165.9M Investment Activity for 2025
- Total Investment: CTO Realty's investment activity for 2025 reached $165.9 million with a weighted average initial cash yield of 9.0%, demonstrating the company's strong investment capability in high-growth markets.
- Shopping Center Acquisitions: The company acquired two shopping centers in Atlanta and South Florida for a total of $144.9 million at a weighted average initial cash yield of 8.7%, further solidifying its presence in premium markets.
- Structured Investment Commitments: CTO Realty originated $21.0 million in structured investment commitments, including $5.0 million in seller financing, with a weighted average initial cash yield of 10.7%, enhancing the company's capital flexibility and income potential.
- Leasing Update: New leases signed with three national retailers at The Collection at Forsyth total approximately 12,000 square feet with initial terms ranging from 5 to 15 years, increasing the center's leased occupancy to 93%, thereby enhancing its market appeal.
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CTO Realty Sells Dallas Shopping Center for $78 Million
- Successful Transaction: CTO Realty sold the Shops at Legacy North in Dallas for $78 million, translating to $321 per square foot, reflecting strong leasing activity over the past two years and indicating a rebound in market demand.
- Capital Recycling: The low 5% exit cash cap rate from this sale allows the company to reinvest capital into higher-yielding opportunities, particularly the recent acquisition of Pompano Citi Centre, which is expected to drive immediate earnings accretion.
- Year-to-Date Disposition Volume: CTO Realty's total disposition volume has reached $85.1 million, including the Legacy North and Main Street properties, maintaining an overall cash cap rate in the mid-5% range, demonstrating the company's robust asset management strategy.
- Future Acquisition Plans: The company intends to use the net proceeds from this transaction for a Section 1031 like-kind exchange, with part of the funds earmarked to retroactively finance the acquisition of Pompano Citi Centre, further enhancing its investment positioning in high-growth markets.
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