Kansas City’s Zona Rosa has changed ownership in a $63.3 million deal that could reshape the Northland shopping and entertainment destination. Florida-based CTO Realty Growth acquired the nearly 768,000-square-foot mixed-use center, citing strong local demographics and an opportunity to improve the property through a long-term, multiphase revitalization plan.
Key takeaways
- CTO Realty Growth purchased Zona Rosa for $63.3 million, or $82 per square foot.
- The center is about 67% leased and draws approximately 5.5 million visits annually.
- The new owner plans a phased effort to reposition and revitalize the property.
- Major tenants include Dick’s Sporting Goods, Barnes & Noble, Old Navy, Burlington and DSW.
A major Northland property changes hands
Zona Rosa sits near Interstate 29 and Barry Road in one of Kansas City’s fastest-growing areas. The center combines retail, restaurants, services and entertainment across nearly 768,000 square feet, making it a prominent commercial destination for residents and visitors in the Northland.
CTO Realty Growth, a Florida-based real estate investment trust, said it views the acquisition as a long-term repositioning opportunity. The company pointed to the property’s location, established customer base and surrounding market growth as factors supporting the purchase.
Revitalization planned in phases
The new ownership group has not released a detailed construction or tenant timeline, but it described the strategy as a long-term, multiphase effort. The plan is expected to focus on strengthening the tenant mix, improving the overall customer experience and extracting additional value from the underleased center.
The acquisition follows Zona Rosa’s recent announcements involving new restaurants, shops and entertainment offerings. Those additions could become part of a broader effort to increase activity and occupancy at the property.
Occupancy remains a central challenge
Zona Rosa was approximately 67% leased when CTO completed the purchase. That leaves substantial space to fill as the company works to stabilize the center and attract new retailers, restaurants and experiential businesses.
The property does, however, have several recognizable anchors. Dick’s Sporting Goods, Barnes & Noble, Old Navy, Burlington and DSW provide an existing retail foundation and help draw visitors to the development.
Deal expands CTO’s acquisition activity
CTO President and CEO John P. Albright said the Zona Rosa purchase contributed to more than $200 million in property acquisitions by the company during the year. Including structured investments, CTO’s activity had reached $334 million, according to the company.
For Kansas City, the transaction places a large and highly visible retail property under an owner focused on repositioning commercial real estate. The success of the strategy will likely depend on how quickly CTO can improve occupancy, add compelling uses and maintain Zona Rosa’s appeal in a competitive retail market.
Sources
- Zona Rosa in Kansas City sold for $63.3M, revitalization planned, KMBC.
- CTO Realty Growth buys Zona Rosa for $63.3 million, The Business Journals.
- Zona Rosa changing ownership after $63M sale, KCTV.