CTO Realty Growth, Inc. has acquired Palms Crossing, a 400,000-square-foot open-air shopping center in McAllen, Texas, from WPG. JLL represented WPG in the transaction, with its Capital Markets Investment Sales and Advisory team led by Barry Brown, Chris Gerard, Claudia Steeb and Erin Lazarus. The disposition marks a change in ownership for one of the better-performing retail centers in the state.
Palms Crossing is located at 3300 W Expy 83 in McAllen and is described as a premier retail destination for the Rio Grande Valley. The center is 98% leased and spans 46.6 acres, combining large-format retailers with a regional draw. Its tenant roster includes well-known national chains such as Hobby Lobby, Restaurant Depot, Best Buy, Burlington, Barnes & Noble and Guitar Center, underscoring the center’s role as a key shopping node for the surrounding trade area.
According to JLL, Palms Crossing ranks in the top 3% of shopping centers in Texas based on shopper traffic, with 7.2 million annual visits reported. The property also benefits from its proximity to the U.S.-Mexico border, with the region seeing approximately 18 million annual border crossings. This cross-border activity is cited as a driver of significant retail demand, supporting both day-to-day shopping and destination visits at the center.
Beyond its existing lease-up, Palms Crossing offers potential upside for the new owner. The site includes more than five acres of developable land, providing room for additional retail or complementary uses, subject to future plans and approvals. In addition, JLL notes that current rents are below market, with below-market leases accounting for 32.3% of the rent roll, suggesting embedded revenue growth opportunities as leases roll to market over time.
With a high occupancy rate, strong visitation metrics and a line-up of national retailers, Palms Crossing stands out as a stabilized yet expandable retail asset within the Rio Grande Valley. The combination of established foot traffic, cross-border shoppers and development potential positions the center as a notable long-term hold for a public retail-focused owner such as CTO Realty Growth, while the sale allows WPG to recycle capital out of a nationally ranked asset.
