CTO Realty Growth Acquires 399,075-SF Palms Crossing Retail Center in McAllen, TX for $81.6 Million
MCALLEN, Texas — CTO Realty Growth, Inc. (NYSE: CTO) has acquired Palms Crossing, a 399,075-square-foot open-air retail center located at 3300 W Expy 83 in McAllen, Texas, for $81.6 million, according to an announcement from JLL. The announcement was dated March 9, 2026, and equates to approximately $204 per square foot.
JLL Capital Markets represented the seller, WPG, in the transaction. The deal was led by JLL Senior Managing Directors Barry Brown, Chris Gerard, and Claudia Steeb, along with Director Erin Lazarus.
Property Overview: A Top-Performing Retail Real Estate Asset
Palms Crossing sits on approximately 46.6 acres and is 98% leased, with a tenant roster that includes Hobby Lobby, Restaurant Depot, Best Buy, Burlington, Barnes & Noble, Guitar Center, P.F. Chang's, Cheddar's, and BJ's Brewhouse. The property ranks in the top 3% of shopping centers in Texas by annual visits, drawing approximately 7.2 million visitors per year.
Several anchor tenants operate top-performing locations within their respective chains. Hobby Lobby's Palms Crossing store ranks in the top 3% of its portfolio by visits, while Best Buy's location ranks in the top 5%.
The property also presents value-add potential. Below-market rents account for 32.3% of current leases, and the site includes more than five acres of developable land. Four separately platted parcels offer what JLL described as immediate pad spin-off opportunities.
McAllen Market Context: Border Economics Drive Retail Demand
McAllen functions as the primary retail hub for the Rio Grande Valley, a region with a population exceeding 2.3 million. The market generates an estimated $10 billion in annual retail sales and records the second-highest retail tax collection per capita of any city in Texas, according to JLL's announcement.
The area's proximity to the U.S.-Mexico border contributes significantly to retail demand. Approximately 18 million annual border crossings generate cross-border consumer traffic that supports the region's retail sector.
Transaction Details
The sale price of $81.6 million reflects a per-square-foot valuation of approximately $204, based on the property's 399,075 square feet of rentable area. No cap rate was disclosed in connection with the transaction. Additional commercial real estate financing details were not reported in the source announcement.
JLL Capital Markets, which facilitated the transaction, operates as a full-service global provider of capital solutions for real estate investors and occupiers. The group's services include investment sales and advisory, debt advisory, mergers and acquisitions, corporate finance, loan sales, equity and fund placement, net lease, derivative advisory, and energy and infrastructure advisory. JLL Capital Markets employs more than 3,000 specialists across offices in nearly 50 countries.