CTO Realty Growth announced it has acquired Palms Crossing, an open-air retail center in McAllen, Texas, for $81.6 million. The property spans approximately 399,000 square feet and sits on 47 acres. It is currently 98% leased and anchored by several national retailers including Best Buy, Hobby Lobby, Burlington, Barnes & Noble and Nike.
Palms Crossing serves a trade area with about 200,000 residents within a five-mile radius. The site also includes two pad sites totaling roughly six acres that the company identified as potential future development opportunities.
Following the acquisition, Texas becomes the company’s third-largest state by annualized cash base rent. The company said that Georgia, Florida, Texas and North Carolina together now account for about 85% of its cash base rent.
CTO Realty Growth plans to initially fund the purchase using available cash and capacity under its revolving credit facility. The company expects to sell another property in mid-2026 and use those proceeds to retroactively fund the Palms Crossing acquisition.
CTO Realty Growth owns and operates open-air shopping centers primarily in higher-growth markets across the Southeast and Southwest United States. The company also externally manages and holds a meaningful ownership stake in Alpine Income Property Trust, a publicly traded net lease REIT.
