CTO Realty Growth Acquires 399,000 Sq Ft Palms Crossing for $81.6M
CTO Realty Growth acquired the 399,000 sq ft Palms Crossing center in McAllen, Texas for $81.6 million, boosting Texas to its third-largest state by annualized cash base rent. The 98% leased property features anchors Best Buy, Hobby Lobby, Burlington, Barnes & Noble and Nike plus two development pad sites.
1. Acquisition Details
CTO Realty Growth purchased the Palms Crossing open-air shopping center in McAllen, Texas for $81.6 million. The transaction covers 399,000 square feet of retail space and reflects the company’s strategy to expand in high-growth Southeast and Southwest markets.
2. Property Characteristics
Palms Crossing sits on 47 acres and is currently 98% leased to national anchors including Best Buy, Hobby Lobby, Burlington Coat Factory, Barnes & Noble and Nike. The site also includes two pad parcels totaling six acres poised for future development opportunities.
3. Portfolio Impact
With this addition, Texas becomes CTO’s third-largest state by annualized cash base rent, and the combined Cash ABR exposure from Georgia, Florida, Texas and North Carolina rises to 85%. This shift underscores the company’s focus on markets with robust demographic growth.
4. Financing and Development Plans
The acquisition will be initially funded through available cash and the revolving credit facility, with an expected property sale in mid-2026 to retroactively fund the purchase. CTO also plans to explore development on the two pad sites to drive additional value.