CTO Realty Growth, a Florida-based real estate investment trust, has acquired Zona Rosa, a 768,000-square-foot mixed-use destination in Kansas City’s Northland, for $63.3 million. The center was 67% leased at the time of the report and features several national retail anchors. The new owner is targeting a repositioning of the property near Kansas City International Airport.
Key takeaways
- CTO Realty Growth paid $63.3 million, or about $82 per square foot, for Zona Rosa.
- The 768,000-square-foot center was 67% leased.
- Dick’s Sporting Goods, Barnes & Noble, Old Navy, Burlington and DSW anchor the property.
The acquisition adds a large mixed-use property to CTO Realty Growth’s portfolio. Zona Rosa’s reported occupancy leaves room to lease additional space as the new owner pursues its repositioning plans.
A major Northland property changes hands
Zona Rosa is located in Kansas City, Missouri, in the city’s Northland, near the airport. Built in 2004, the center spans 768,000 square feet and sold for $63.3 million. That works out to roughly $82 per square foot, based on the reported sale price and size.
The property combines retail with other uses, though the available transaction details do not specify the makeup of those uses. Its scale and location make it a significant commercial asset in the Northland market.
National retailers anchor the center
Dick’s Sporting Goods, Barnes & Noble, Old Navy, Burlington and DSW are among Zona Rosa’s major tenants. These retailers provide established anchors for the property, while the reported 67% lease rate indicates that a substantial portion of its space was not leased at the time of the report.
The occupancy figure offers a key measure of the work ahead for CTO Realty Growth. The company’s repositioning strategy could include efforts to attract tenants and strengthen the center’s appeal, but specific plans were not detailed in the available report.
What the acquisition signals
The purchase gives CTO Realty Growth control of a sizable Kansas City-area center at a price of $63.3 million. The combination of recognizable retail anchors, available leasing capacity and a Northland location shapes the opportunity—and the challenge—as the REIT works to reposition the property.
The transaction’s longer-term impact will depend in part on the owner’s execution and its ability to lease space. No timeline, investment budget or leasing targets were included in the reported transaction details.