CTO Realty Growth Acquires Palms Crossing for $81.6 Million

The open-air retail center in McAllen, Texas is 98% leased and anchored by major retailers.

Published on Mar. 2, 2026

Got story updates? Submit your updates here. ›

CTO Realty Growth, Inc., a leading owner and operator of open-air shopping centers in the Southeast and Southwest U.S., has announced the acquisition of Palms Crossing, a 399,000 square-foot retail center in McAllen, Texas, for $81.6 million. The property is currently 98% leased and anchored by major tenants like Best Buy, Hobby Lobby, Burlington Coat Factory, Barnes & Noble, and Nike.

Why it matters

This acquisition expands CTO Realty Growth's presence in Texas, which is now the company's third largest state by annualized cash base rent. The deal also increases the percentage of CTO's cash base rent coming from key growth markets in Georgia, Florida, Texas, and North Carolina to 85%.

The details

Palms Crossing is located on 47 acres in McAllen, Texas, a city of around 200,000 people within a 5-mile radius of the property. The retail center also features two pad sites representing future development opportunities on approximately 6 additional acres. CTO plans to initially fund the acquisition with available cash and its revolving credit facility, and expects to sell another property in mid-2026 to retroactively fund the Palms Crossing purchase.

  • CTO Realty Growth announced the acquisition on March 2, 2026.
  • The company expects to sell another property in mid-2026 to retroactively fund the Palms Crossing acquisition.

The players

CTO Realty Growth, Inc.

A leading owner and operator of high-quality, open-air shopping centers located in the higher growth Southeast and Southwest markets of the United States.

Palms Crossing

An open-air retail center consisting of 399,000 square feet that is currently 98% leased, anchored by major tenants like Best Buy, Hobby Lobby, Burlington Coat Factory, Barnes & Noble, and Nike.

Got photos? Submit your photos here. ›

What’s next

In mid-2026, CTO Realty Growth expects to sell a property with proceeds used to retroactively fund the Palms Crossing acquisition.

The takeaway

This acquisition further expands CTO Realty Growth's footprint in high-growth Sunbelt markets, increasing its presence in Texas and boosting the percentage of cash base rent coming from key Southeast and Southwest regions.