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JACKSONVILLE, FL—Consolidated-Tomoka Land Co. announced the purchase of The Strand, an approximately 212,000-square-foot shopping center in Jacksonville, Florida for $62.7 million. The Strand is 95% occupied and has four anchor tenants: Hobby Lobby, Best Buy, 2nd & Charles and the PGA Superstore.
Mark E. Patten, Consolidated-Tomoka's SVP and CFO, tells GlobeSt.com that the seller was not disclosed. He describes the property as a great value.
"It's a terrific market and a great location," Patten says. "We're familiar with the area and have other assets in the commercial retail corridor there."
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 over 150 tenants including Tiffany's, Louis Vuitton, Tesla, Apple and Nordstrom.
Consolidated-Tomaka previously purchased five ground leases that are outparcels 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, Inc. on behalf of Consolidated-Tomaka.
The company purchased the property using 1031 like-kind exchange proceeds from the October 2019 transaction with Magnetar Capital representing the sale of a controlling interest in the company's remaining land portfolio for $97 million. With the completion of the acquisition of the Strand, the company has reinvested approximately $86 million of the Magnetar proceeds.
Consolidated-Tomaka 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.
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