CTO Realty Growth Acquires Pompano Citi Centre for $65.2 Million

CTO Realty Growth Makes Strategic Entry into Fort Lauderdale Market with $65.2 Million Acquisition

CTO Realty Growth, Inc. (NYSE: CTO) has announced a significant expansion into the Florida market with the acquisition of Pompano Citi Centre in Pompano Beach for $65.2 million. This strategic move on December 18, 2025, adds a substantial open-air retail center to the company’s portfolio, underscoring its focus on high-growth regions in the Southeast.

The Pompano Citi Centre encompasses 509,000 square feet of operating space, currently boasting a high occupancy rate of 92%. The property also includes an additional 62,000 square feet of unfinished shell space, presenting a compelling opportunity for future leasing upside and value creation. Anchored by a strong roster of national retailers including Burlington, TJ Maxx, Nordstrom Rack, Ross Dress for Less, and J.C. Penney, the center is well-positioned to capture consumer spending.

Strategically located on 35 acres at the intersection of Federal Highway and Copans Road, the property benefits from robust local demographics. The surrounding five-mile trade area features an average household income of $105,000 and a population exceeding 250,000, indicating a strong consumer base.

“This acquisition marks our first entry into the Fort Lauderdale market and represents a key expansion of our Florida footprint,” stated John P. Albright, President and Chief Executive Officer of CTO Realty Growth. “We identify a significant opportunity to enhance long-term value through strategic mark-to-market rent adjustments and incremental leasing initiatives. Furthermore, this transaction is accretive to an anticipated property disposition and boosts our year-to-date investment volume to $149.9 million.”

The acquisition of Pompano Citi Centre is poised to be a pivotal addition to CTO’s portfolio. The existing occupancy rate suggests a stable income stream from day one, while the undeveloped shell space offers a clear path to increasing the center’s overall square footage and rental revenue. This dual approach to value creation—leveraging existing performance and capitalizing on future development—is a hallmark of successful real estate investment strategies.

From a technical perspective, the Pompano Citi Centre’s prime location and strong tenant mix align with market trends favoring well-located, necessity-driven retail centers. The ability to implement “mark-to-market” rent adjustments, as highlighted by management, is crucial in today’s environment. It allows CTO to capture current market rental rates as leases expire, potentially leading to significant revenue growth beyond current projections. This is particularly relevant given the continued demand for accessible, open-air shopping experiences.

The deal’s accretive nature to an anticipated disposition indicates a disciplined capital allocation strategy by CTO. The company appears to be actively managing its asset base, recycling capital from mature properties into strategic acquisitions that offer higher growth potential. This active portfolio management is a key indicator for investors assessing the company’s operational efficiency and forward-looking growth strategy.

The inclusion of a significant amount of shell space also speaks to CTO’s operational capabilities. Successfully leasing and developing this space will require expertise in tenant negotiation, construction management, and market analysis. The engagement of Avenue Real Estate Partners to manage leasing suggests a proactive approach to maximizing the value of this component of the acquisition.

While the acquisition price of $65.2 million is substantial, the 92% occupancy and the significant population and income metrics in the trade area suggest a favorable valuation. The total year-to-date investment volume of $149.9 million demonstrates a clear commitment to portfolio expansion and strategic growth.

The market context reveals that CTO’s stock has seen mixed reactions to operational updates in recent months. While positive news regarding tenant openings and leasing has been frequent, the immediate stock price performance has sometimes been muted or even negative. This suggests that investors are keenly observing how these operational wins translate into tangible financial gains and sustained share price appreciation. The Pompano Citi Centre acquisition, however, represents a larger-scale strategic initiative that could potentially shift market perception if its value-creation potential is successfully realized.

The acquisition by CTO Realty Growth positions the company to capitalize on the dynamic retail landscape in South Florida, leveraging a well-established center and significant upside potential through strategic leasing and development.