Consolidated-Tomoka Announces Acquisition of a Net Lease Property in Downtown Aspen, Colorado for $26.5 Million
February 23 2018 - 4:20PM
Business Wire
Consolidated-Tomoka Land Co. (NYSE American: CTO) (the
“Company”) today announced the purchase of a 19,596-square foot,
newly constructed commercial building (the “Property”) located in
downtown Aspen, Colorado, for $28 million, with the Company’s net
investment totaling $26.5 million after giving affect for
contributions made by the Master Tenant, as defined below.
Simultaneous with the closing, the Company entered into a
twenty-year master lease on the Property with an affiliate of A.G.
Hill Partners, a Dallas, Texas based family office (the “Master
Tenant”). The Hill family owns and operates Highland Park
Village, a 265,000-square foot luxury shopping center in Dallas and
is developing The Haven, a luxury shopping outlet center in West
Haven, Connecticut. The lease includes annual rent escalations,
tenant repurchase options and is absolute net to the Company.
The Property is located at E. Hyman Avenue and Hunter Street in
downtown Aspen, approximately one block from the new Aspen Art
Museum and two blocks from The Little Nell hotel. The Master Tenant
currently has approximately 26% of the Property leased to three
retail sub-tenants and is in on-going negotiations for the
remaining available space.
The initial investment yield is below the low end of the
Company’s 2018 guidance, however, the actual yield could meet or
exceed the upper end of the Company’s guidance in the first 2 to 3
years of the lease.
About Consolidated-Tomoka Land Co.
Consolidated-Tomoka Land Co. is a Florida-based publicly traded
real estate company, which owns a portfolio of income investments
in diversified markets in the United States including over 2.1
million square feet of income properties, as well as nearly 8,100
acres of land in the Daytona Beach area. Visit our website at
www.ctlc.com.
We encourage you to review our most recent investor
presentations which are available on our website
at www.ctlc.com.
SAFE HARBOR
Certain statements contained in this press release (other than
statements of historical fact) are forward-looking statements.
Words such as “believe,” “estimate,” “expect,” “intend,”
“anticipate,” “will,” “could,” “may,” “should,” “plan,”
“potential,” “predict,” “forecast,” “project,” and similar
expressions and variations thereof are intended to identify certain
of such forward-looking statements, which speak only as of the
dates on which they were made, although not all forward-looking
statements contain such words. Although forward-looking statements
are made based upon management’s expectations and beliefs
concerning future developments and their potential effect upon the
Company, a number of factors could cause the Company’s actual
results to differ materially from those set forth in the
forward-looking statements. Such factors may include the ability of
the Master Tenant to lease up the property owned by the Company,
the ability of the Company to complete 1031 exchange transactions,
the availability of investment properties that meet the Company’s
investment goals and criteria, the modification of terms of certain
land sales agreements, uncertainties associated with obtaining
required governmental permits and satisfying other closing
conditions for planned acquisitions and sales, as well as the
uncertainties and risk factors discussed in our Annual Report on
Form 10-K for the fiscal year ended December 31, 2016 as filed with
the Securities and Exchange Commission. There can be no assurance
that future developments will be in accordance with management’s
expectations or that the effect of future developments on the
Company will be those anticipated by management. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this release.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180223005630/en/
Consolidated-Tomoka Land Co.Mark E. Patten, Phone: 386-944-5643,
Facsimile: 386-274-1223Sr. Vice President & Chief Financial
Officermpatten@ctlc.com
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