The Palms Crossing shopping center in southwest McAllen was recently acquired by CTO Realty Growth, Inc. for nearly $82 million. (Courtesy Explore McAllen/City of McAllen)
A bustling shopping center in deep South Texas has new owners who recently purchased it for nearly $82 million.
CTO Realty Growth, Inc., a publicly owned real estate investment trust headquartered in Daytona Beach, Florida, announced that it had acquired the sprawling Palms Crossing shopping center located in southwestern McAllen, in the Rio Grande Valley. CTO will pay $81.6 million for the 47-acre property, which features 339,000 square feet of retail space laid out in an “open-air” concept, according to a Monday, February 2, news release. With the acquisition, Texas will become CTO’s third-largest state based on yearly cash rent.
The Palms Crossing shopping center in southwest McAllen was recently acquired by CTO Realty Growth, Inc. for nearly $82 million. (Courtesy Explore McAllen/City of McAllen)
Located at 3300 Expressway 83, McAllen, TX 78501, the Palms Crossing shopping center serves as the retail centerpiece in an area that serves as the hub of McAllen’s arts, entertainment and hospitality scene. It lies about two miles from the McAllen International Airport and the equally bustling La Plaza Mall. Palms Crossing is located where South Ware Road meets Interstate 2 (also called Expressway 83).
It is anchored by major retailers like BestBuy, Hobby Lobby, Barnes & Noble, Guitar Center, Cavender’s Boot City and more that are laid out as standalone buildings, or as part of airy and welcoming plaza strips. The development includes a number of fast-casual eateries, including Longhorn Steakhouse, P.F. Chang’s, Cheddar’s, McAlister’s Deli, and the only Romano’s Macaroni Grill still open in Texas. Some 98% of the tenant spaces at Palms Crossing are leased, and the property includes 6 acres of additional space for future development.
The Palms Crossing shopping center in southwest McAllen was recently acquired by CTO Realty Growth, Inc. for nearly $82 million. (Courtesy Explore McAllen/City of McAllen)
Tucked away behind Palms Crossing lie the McAllen Convention Center and the McAllen Performing Arts Center, as well as a small, serene park dedicated to veterans called the Veterans War Memorial of Texas. Along South Ware Road lie a number of hotels, including an Embassy Suites, a La Quinta Inn & Suites, and a Home2 Suites by Hilton, among others.
CTO said it will fund its nearly $82 million purchase of the popular McAllen shopping center with cash on hand, as well as via proceeds it expects to receive from another commercial property sale later this year.
This article originally published at Major Texas shopping center just sold for $82M to out-of-state investor.