Business Context and Reporting Period
This Form 8-K is a current report filed by Consolidated-Tomoka Land Co. (CTO Realty Growth, Inc.) on December 9, 2019. The filing details the completion of a significant asset acquisition in Jacksonville, Florida.
Key Financial Metrics and Transaction Details
- Acquisition Price: Approximately $62.7 million.
- Asset Acquired: The Strand, a 212,000 square foot multi-tenant commercial retail property.
- Occupancy: 95% occupied with 20 tenants.
- Lease Terms: Weighted average lease term of approximately 9.5 years.
- Anchor Tenants: Hobby Lobby, Best Buy, 2nd & Charles, and the PGA Superstore.
- Funding Source: Proceeds from a 1031 like-kind exchange derived from the October 2019 sale of a controlling interest in the Company's remaining land portfolio to Magnetar Capital for $97 million.
Material Changes
The primary material change is the addition of The Strand to the Company's portfolio. This transaction represents a strategic shift utilizing proceeds from the divestiture of the Company's land portfolio to acquire income-producing commercial real estate. The Company also previously acquired five ground leases serving as outparcels to this property in 2018.
Outlook, Management Commentary, and Risks
Management has engaged Colliers International Northeast Florida, Inc. to lease and manage the property. The filing notes that required financial statements of the business acquired and pro forma financial information will be filed by amendment no later than 71 days after the initial Form 8-K filing date. No specific risks or contingencies regarding the transaction were detailed in this specific excerpt beyond standard regulatory disclosures.
Investor Verification Checklist
- Verify the pro forma financial impact of the acquisition once filed within the 71-day window.
- Confirm the specific lease expiration schedules for the four anchor tenants.
- Review the full financial statements of the acquired business to assess historical performance.
- Monitor the integration of the property into the Company's existing portfolio and management structure.