Florida-based CTO Realty Growth Inc. has acquired Zona Rosa, a 768,000-square-foot open-air shopping and mixed-use center in Platte County, Missouri, for $63.3 million. The purchase gives the publicly traded real estate investment trust control of a major Northland destination near Kansas City International Airport, along with significant room for redevelopment and new tenants.
Key takeaways
- CTO Realty Growth paid $63.3 million, or about $82 per square foot, for Zona Rosa.
- The center is currently 67% leased.
- CTO plans a phased revitalization of the property.
- The site includes 10 acres of entitled development land and roughly 100,000 square feet of underutilized space.
- Its location near the airport and growing Kansas City neighborhoods was a key attraction.
The acquisition marks a significant change in ownership for one of the Kansas City area’s best-known open-air retail destinations. CTO said the property was purchased at a price it considers well below replacement cost, potentially giving the company flexibility to invest in improvements and future development.
A large property with redevelopment potential
Zona Rosa combines retail, dining, personal services, fitness businesses and other commercial uses across its expansive campus. However, the center is not fully occupied: its current lease rate is 67%.
CTO intends to address that gap through multiple phases of revitalization. The company has identified approximately 100,000 square feet of underutilized space, as well as 10 acres of land already entitled for development. Those assets could support new construction, updated amenities or reconfigured commercial offerings as the project moves forward.
The company has not publicly detailed a complete timeline or final scope for the planned phases. Future changes are expected to be shaped by leasing demand, market conditions and the center’s existing tenant mix.
Location drives the investment
CTO cited Zona Rosa’s proximity to Kansas City International Airport and its position within the Northland as important reasons for the purchase. The surrounding area includes fast-growing neighborhoods, creating a potentially expanding customer base for retailers, restaurants and service providers.
The company also said there is no comparable shopping center within a 20-minute drive. That lack of a nearby direct competitor could help Zona Rosa retain its role as a regional destination while CTO works to improve occupancy and strengthen the property’s appeal.
CTO expands its retail portfolio
CTO Realty Growth is a publicly traded real estate investment trust focused primarily on retail-based properties in higher-growth U.S. markets. Its portfolio extends across states including Arizona, New Mexico, Texas, Georgia, Florida, North Carolina and Virginia.
The Zona Rosa purchase adds a sizable Midwest asset to that broader portfolio. By acquiring a property with existing retail activity, available space and entitled land, CTO gains both an operating center and several potential avenues for long-term growth.
Sources
- Florida-based real estate corporation acquires Zona Rosa for $63.3M, KSHB 41 Kansas City.