CTO Realty Acquires Richmond Grocery-Anchored Retail for $94M

CTO Realty Growth acquired West Broad Village, a 392,000 square foot mixed-use, grocery-anchored lifestyle property in the Short Pump submarket of Richmond, Virginia for $93.9 million. The price represents a going-in cap rate above the range of the company’s current guidance for initial cash yields.

West Broad Village was developed on 32.6 acres in phases between 2007 to 2014. It is surrounded by a mix of high-end residential, hospitality and office properties. Situated on West Broad Street within the area’s leading commercial corridor and near I-64 and the I-295 interchange, the property has an amplified trade area allowing it to benefit from five-mile average household incomes of more than $140,000 and a five-mile population of nearly 175,000. West Broad Village is 83% occupied and comprised of approximately 315,600 square feet of retail and 76,400 square feet of complementary office. It includes a combination of national and local tenants spanning the grocery, food & beverage, entertainment, education, home décor, childcare and medical sectors.

The property was purchased through a 1031 like-kind exchange using $35 million of restricted cash generated from the CTO Realty Growth’s previously completed property dispositions, available unrestricted cash, and draws from the company’s unsecured revolving credit facility. The acquisition was structured as a reverse like-kind exchange to account for possible future dispositions of income properties by the company.