Publications

Consolidated-Tomoka Land Co. launches single-tenant net-lease REIT
Transactions - OCTOBER 24, 2019

Consolidated-Tomoka Land Co. launches single-tenant net-lease REIT

by Andrea Zander

Consolidated-Tomoka Land Co. (CTO) has plans to create a single-tenant net-lease REIT to be called Alpine Income Property Trust, or PINE. CTO will seed the new REIT with a portfolio of 20 of its single-tenant net-lease income properties.

CTO has plans to raise $100 million in an IPO. PINE intends to raise the necessary capital to acquire from CTO 15 of the IPO portfolio assets for approximately $125.9 million in cash.

CTO also announced that its investment strategy will focus on higher return real estate assets, and that the company will rebrand itself as CTO Realty Growth. It will invest on higher return multi-tenant office and retail properties in strong metropolitan statistical areas and select growth markets throughout the United States.

The company anticipates redeploying the approximately $125.9 million in proceeds from the planned cash sale of the 15 assets to PINE, and the approximately $97 million in proceeds from the recently announced land joint venture, to acquire properties consistent with its strategy utilizing the 1031 like-kind exchange transaction structure. The company will maintain its status as a C-corporation while retaining the optionality to convert to a REIT in the future.

Forgot your username or password?