Earlier this month, Consolidated-Tomoka Land Co. acquired a 210,000-square-foot net leased office building in Albuquerque, NM .
JACKSONVILLE, FL— Consolidated-Tomoka Land Co. reports it has acquired fee simple interest in eight ground leases adjacent to the St. Johns Town Center mall in Jacksonville for approximately $32.3 million.
The ground leases, situated on 10.45 acres, all have rent escalations during the initial term, most of which are every five years, and have a weighted-average remaining term of approximately 15 years, the Dayton Beach, FL-based company reports. The transaction is expected to be part of a 1031 like-kind exchange associated with land sales and possibly the recycling of certain multi-tenant income properties.
The ground leases are improved with eight single-tenant net-lease retail properties, totaling approximately 44,000 square feet, with tenants including a Chase Bank, a WaWa, five national restaurant brands including Cheddar's and Chuy's, and a car wash. The initial investment yield is above the low end of the company's 2018 guidance.
As a result of the e acquisition of the ground leases, the company's income property portfolio has a total of 45 properties with aggregate net operating income of approximately $32.6 million, and a weighted average lease duration for the single-tenant income property portfolio of approximately 9.7 years. The acquisition further reflects the company's efforts to hone its investment focus toward single-tenant net-lease income properties.
The ground leases are located in the two newly developed retail centers, called “The Strand” and “The Crossing” bordering the 1.4 million-square-foot St. Johns Town Center mall that is home to more than 150 tenants including Tiffany's, Louis Vuitton, Tesla, Apple and Nordstrom.
Earlier this month, Consolidated-Tomoka Land Co. acquired a 210,000-square-foot net leased office building in Albuquerque, NM for $44 million or approximately $209-a-square-foot.
Consolidated-Tomoka Land Co. owns more than 2.3 million square feet of income properties in diversified markets in the United States, as well as nearly 5,500 acres of land in the Daytona Beach area.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
