DAYTONA BEACH, Fla., July 08, 2019 (GLOBE NEWSWIRE) -- Consolidated-Tomoka Land Co. (NYSE American: CTO) today announced the purchase of approximately 1.4 acres of land under the Carpenter Hotel in Austin, Texas, for approximately $16.25 million. Separately, the Company entered into a new 99-year ground lease (the “Ground Lease”) whereby the Company leased back the land to the seller. The Ground Lease includes annual escalations, certain future repurchase rights and is absolute net to the Company. The Carpenter Purchase was structured as part of a 1031 like-kind exchange using proceeds from the recently completed sale of the multi-tenant office property at 3600 Peterson in Santa Clara, California.

Additionally, the Company originated an $8.25 million loan (the “Carpenter Loan”) secured by the leasehold interest in the Carpenter Hotel in Austin, Texas. The Carpenter Loan has a term of one-year, bears an interest rate of 11.50% and, included an origination fee of 1.00%. The partial recourse loan also requires multiple reserves and a cash flow sweep that will amortize the principal during the term.

The Carpenter Hotel (the “Carpenter”), developed in 2018, is a 93-room boutique hotel located in Austin, Texas. The Carpenter is located just south of downtown Austin surrounded by the Zilker Park, Barton Springs, South Lamar and South Congress areas of Austin. Formerly the site of a carpenter’s union hall, the Carpenter also features a swimming pool, café and Carpenter’s Hall, a full-service restaurant. Carpenter is managed by The Mighty Union, which also manages several other hotel and restaurant properties in the United States.

Including the Carpenter Purchase and Carpenter Loan, the Company has invested approximately $57 million year-to-date or approximately 57% of the mid-point of the Company’s 2019 guidance for income-producing assets. The investments consisted of the acquisition of six single-tenant properties located in six different states with a weighted average cap rate above the mid-point of the Company’s 2019 guidance. The Company has also invested approximately $16.25 million in two separate loans with a weighted average yield slightly below 12.00%.

About Consolidated-Tomoka Land Co.

Consolidated-Tomoka Land Co. is a Florida-based publicly traded real estate company, which owns approximately 2.3 million square feet of income properties in diversified markets in the United States, as well as over 5,300 acres of land in the Daytona Beach area. Visit our website at www.ctlc.com.