Consolidated-Tomoka purchases Jacksonville shopping center for $63m
Transactions - DECEMBER 13, 2019

Consolidated-Tomoka purchases Jacksonville shopping center for $63m

by Released

Consolidated-Tomoka Land Co.  has purchased of The Strand, an approximately 212,000-square-foot shopping center in Jacksonville, Fla., for $62.7 million.  

The Strand is 95 percent occupied and has four anchor tenants: Hobby Lobby, Best Buy, 2nd & Charles and the PGA Superstore. The weighted average lease term for the leases of all 20 tenants at the Strand is approximately 9.5 years. The Strand is adjacent to the 1.4 million-square-foot St. Johns Town Center, the upscale super-regional open-air mall co-owned and managed by the Simon Property Group that is home to more than 150 tenants, including Tiffany’s, Louis Vuitton, Tesla, Apple and Nordstrom.  

The company previously purchased five ground leases that are out parcels of the Strand, which were purchased as part of the acquisition of a portfolio of eight ground leases located in that commercial retail corridor. The Strand will be leased and managed by Colliers International Northeast Florida, on behalf of the company.
Including the acquisition of the Strand, the company’s annualized net operating income is expected to reach approximately $27.5 million. The initial investment cap rate for the Strand acquisition was above the mid-point of the range in the company’s 2019 guidance.

This acquisition was purchased using 1031 like-kind exchange proceeds from the company’s October 2019 transaction with Magnetar Capital representing the sale of a controlling interest in the company’s remaining land portfolio for $97 million (the Magnetar Proceeds). With the completion of the acquisition of the Strand, the company has reinvested approximately $86 million of the Magnetar Proceeds. The company also has approximately $116 million of additional 1031 like-kind exchange proceeds from the sale of 20 assets to Alpine Income Property Trust in November 2019.  The company intends to reinvest the remaining approximately $125 million of proceeds during the first half of 2020.

Including this transaction, the company year-to-date has acquired 11 income properties for an aggregate investment amount of approximately $165 million, which exceeds the top end of the company’s 2019 guidance for income property acquisitions by approximately $45 million, or approximately 37 percent.

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