CTO Realty Growth Completes $78 Million Sale of Dallas Retail Center

2025-12-20 companies

Winter Park, Friday, 19 December 2025.
CTO finalized the $78 million sale of Shops at Legacy North, strategically recycling capital to retroactively fund its recent $65.2 million Florida acquisition.

Strategic Capital Recycling

On Friday, December 19, 2025, CTO Realty Growth, Inc. (NYSE: CTO) announced the disposition of the Shops at Legacy North in Dallas, Texas, for $78.0 million [1]. The transaction for the 22,574-square-meter mixed-use lifestyle center equates to a valuation of approximately $3,450 per square meter [1]. This sale was executed at an exit cash capitalization rate in the low-5% range, reflecting the premium pricing achieved for the asset [1]. Management has designated the net proceeds for a Section 1031 like-kind exchange to retroactively fund the purchase of Pompano Citi Centre, with the surplus of 12.8 million earmarked for future acquisitions [1][7].

Expanding the Florida Footprint

The capital from the Dallas sale supports the company’s entry into the Fort Lauderdale market through the acquisition of Pompano Citi Centre, which closed on December 17, 2025 [1]. CTO purchased the 35-acre property for $65.2 million [7]. The asset comprises 509,000 square feet of operating space that is 92% occupied, alongside 62,000 square feet of unfinished shell space that offers future leasing potential [7]. Anchored by major retailers such as TJ Maxx, Burlington, and Ross Dress for Less, this acquisition brings the company’s year-to-date investment volume to $149.9 million [7]. John P. Albright, President and CEO, emphasized that recycling capital from the low-yielding Dallas disposition into this higher-yielding opportunity is expected to drive immediate earnings accretion [1].

Leasing Momentum and Market Performance

The favorable pricing for the Shops at Legacy North was underpinned by significant recent leasing activity, including a 30,000-square-foot, 10-year lease signed in November 2025 [1][4]. This operational momentum extends elsewhere in the portfolio; on December 16, 2025, a 1,115-square-meter Boot Barn opened at the Marketplace at Seminole Towne Center, replacing a former Party City location [6]. Following the news of the disposition, CTO stock closed at $18.09 on December 19, 2025, a decrease of 2.31% [5]. The company currently maintains a market capitalization of $585.67 million and a dividend yield of 8.40%, following a declared quarterly dividend of $0.38 per share in November [4][5].

Sources

Real Estate Asset Divestiture