CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
CBL & Associates Properties, Inc. (NYSE: CBL) and Teachers'
Retirement System of The State of Illinois ("TRS"), advised by
Commonwealth Realty Advisors, Inc., today announced that they have
agreed to form a 50/50 joint venture partnership to acquire a
portfolio of retail and office buildings in North Carolina including
Friendly Center and The Shops at Friendly Center in Greensboro, six
office buildings located adjacent to Friendly Center in Green Valley
Office Park and Renaissance Center in Durham, NC. The portfolio will
be acquired from the Starmount Company, a private real estate owner,
operator and developer. The Company expects to close on the majority
of the transaction today with the closing of Renaissance Center
occurring by the end of the year.
Commenting on the acquisition, Stephen Lebovitz, President of CBL
& Associates Properties, Inc. said, "We are pleased to partner with
TRS on this acquisition. Their expertise and knowledge of real estate
investments is widely recognized in the industry. Friendly Center and
The Shops at Friendly Center are regarded as one of the top lifestyle
centers in the southeast and will perfectly complement our existing
portfolio of dominant retail centers. This transaction represents a
phenomenal opportunity for CBL to add substantial value for our
shareholders now and going forward through the numerous leasing,
management, and development opportunities the properties offer."
The joint venture will assume approximately $81.6 million of
non-recourse, long-term fixed debt at a weighted average interest rate
of 5.77%, secured by Phase One of The Shops at Friendly Center and The
Renaissance Center.
CBL will also acquire from The Starmount Company, a 100% interest
in a portfolio of eight community centers located in Greensboro and
High Point, NC, and twelve office buildings located in Greensboro and
Raleigh, NC and Newport News, VA.
The transactions are valued at an aggregate $540.8 million,
including the $356.6 million joint venture with TRS. CBL will acquire
their interest at a weighted average cap rate of 7.1%, based on income
in-place at acquisition. CBL estimates that the transaction will
generate approximately $0.03 per share of funds from operations for
the first twelve months of operation following the transaction close.
The total transaction, net of assumed debt, will be financed through a
new 459.1 million term and bridge loan. CBL intends to market the
wholly owned portfolio of community centers and office buildings for
disposition and use the proceeds to pay down outstanding balances on
the term and bridge loans.
About The Friendly Center and The Shops at Friendly Center
The Friendly Center is one of the largest and most successful
lifestyle centers in the southeast. Originally developed in 1957, it
has been expanded several times to its present one million square foot
size. The center is currently 94% occupied and is anchored by Belk,
Macy's, Sears, a 16-screen Grande Cinema, Barnes & Noble and Old Navy.
Friendly Center features a premier selection of shops and restaurants,
including Victoria's Secret, Jos. A. Banks, and Ann Taylor LOFT. As of
October 31, 2007 Friendly Center produced sales of $426 per square
foot for the previous twelve-months. There is a 20,000 square foot
expansion that is currently under construction at Friendly Center. The
expansion will introduce Apple to the market as well as other
in-demand retailers. The expansion is scheduled for completion in
spring 2008.
The Shops at Friendly Center is a 253,000 square foot open-air
associated center that is located adjacent to The Friendly Center.
Added in 2006, The Shops is currently 88.9% occupied and is anchored
by an upscale Harris Teeter supermarket as well as REI and offers a
premier line-up of lifestyle retailers and restaurants including White
House / Black Market, Sur La Table, Acorn, Ann Taylor, J. Crew, Brooks
Brothers, P.F. Chang's and Fleming's Prime Steakhouse and Wine Bar.
The 62,500 square foot Phase II of The Shops at Friendly Center is
currently under construction with a grand opening scheduled for summer
2008. DSW and Ulta Cosmetics will anchor the expansion along with more
than 17,000 square feet of shops. The Friendly Center and The Shops at
Friendly Center are located on 123.0 acres in an affluent suburb of
northwest Greensboro near Holden Road, Westridge Road, Bryan
Boulevard, and West Friendly Avenue and are connected to I-40 by West
Wendover Avenue. The centers benefit from strong and growing
demographics including more than 485,000 residents within a 15-mile
radius and average household incomes within a one-mile radius of over
$95,000.
About Renaissance Center
Renaissance Center is a 355,000 square foot power center anchored
by REI, World Market, Linens N' Things and offers a premier selection
of restaurants including PF Chang's, and Ted's Montana Grill. It is
situated adjacent to The Streets at Southpoint on 21.0 acres off of
I-40, in the primary retail hub of Durham NC, and is currently 89%
occupied. The center was developed in phases beginning in 2004 and
completed in 2007.
About The Joint Venture Office Portfolio
The joint venture office portfolio includes six Class-A office
building located in the prestigious Green Valley Office Park, which is
adjacent to The Friendly Center. The tenants include most of the
area's major bank branches and several net leased credit-tenants.
Property City, State Total Percentage Anchors/Major
GLA Occupied Tenants
--------------------- -------------- ------- ---------- --------------
First National Bank First National
Building Greensboro, NC 3,774 100% Bank
--------------------- -------------- ------- ---------- --------------
First Citizens Bank First Citizens
Building Greensboro, NC 43,088 90% Bank
--------------------- -------------- ------- ---------- --------------
Friendly Center Starmount
Building Greensboro, NC 32,478 95% Company
--------------------- -------------- ------- ---------- --------------
CitiFinancial,
MetLife,
Green Valley Office Innovative
Building Greensboro, NC 27,604 94% Financial
--------------------- -------------- ------- ---------- --------------
Bank of America Bank of
Building Greensboro, NC 49,327 100% America
--------------------- -------------- ------- ---------- --------------
BB&T/Wachovia
Wachovia/BB&T Office (locating in
Building Greensboro, NC 12,000 100% May 2008)
--------------------- -------------- ------- ---------- --------------
Total/ Weighted
Average 168,271 95.5%
--------------------- -------------- ------- ---------- --------------
About The Community Center Portfolio
Property City, State Total Percentage Anchors/Major
GLA Occupied Tenants
------------------- -------------- ------- ---------- ----------------
Westridge Square Greensboro, NC 215,000 100.0% Harris Teeter
------------------- -------------- ------- ---------- ----------------
Harris Teeter,
Oak Hollow Square High Point, NC 139,000 98.5% Stein Mart
------------------- -------------- ------- ---------- ----------------
Lowe's Food,
New Garden Crossing Greensboro, NC 110,000 94.2% Office Depot
------------------- -------------- ------- ---------- ----------------
T.J. Maxx, Ross
Northwest Centre Greensboro, NC 86,000 97.0% Dress for Less
------------------- -------------- ------- ---------- ----------------
Garden Square
Shopping Center Greensboro, NC 24,000 100.0% Blockbuster
------------------- -------------- ------- ---------- ----------------
Taekwondo/ IPD
Eatery & Grill/
Caldwell Court Greensboro, NC 14,000 100.0% Dan's Fan City
------------------- -------------- ------- ---------- ----------------
Box Seat
Restaurant/Fred
Astaire Dance
Hunt Village Greensboro, NC 31,000 55.4% Studio
------------------- -------------- ------- ---------- ----------------
Rush Gym, Stein
Brassfield Shopping Mart, Cinemark
Center Greensboro, NC 195,000 73.7% Theater
------------------- -------------- ------- ---------- ----------------
Total/Weighted
Average 814,000 90.6%
------------------- -------------- ------- ---------- ----------------
About The Wholly Owned Office Portfolio
Property City, State Total Percentage Major Tenants
GLA Occupied
------------------ ---------------- ------- ---------- ---------------
Sun Trust Bank
Building Greensboro, NC 106,968 87% Sun Trust Bank
------------------ ---------------- ------- ---------- ---------------
Lake Point Office Richardson
Building Greensboro, NC 88,088 95% Properties
------------------ ---------------- ------- ---------- ---------------
706 Green Valley International
Road Greensboro, NC 139,050 79% Textile
------------------ ---------------- ------- ---------- ---------------
Oak Branch Wells Fargo
Business Center Greensboro, NC 32,963 76% Bank
------------------ ---------------- ------- ---------- ---------------
Westridge Suites Greensboro, NC 11,187 81% Century 21
------------------ ---------------- ------- ---------- ---------------
Hughs, Pittman
& Gupton/First
Point
1500 Sunday Drive Raleigh, NC 61,227 98% Management
------------------ ---------------- ------- ---------- ---------------
Lockhart &
One Oyster Point Newport News, VA 63,610 100% Yeats
------------------ ---------------- ------- ---------- ---------------
Re/Max
Peninsula
Realtors/ SRA
Two Oyster Point Newport News, VA 39,049 100% International
------------------ ---------------- ------- ---------- ---------------
840 Greenbrier Map
Circle Chesapeake, VA 48,756 67% Communications
------------------ ---------------- ------- ---------- ---------------
Canon
Information
850 Greenbrier Technology
Circle Chesapeake, VA 81,318 100% Services
------------------ ---------------- ------- ---------- ---------------
Department of
Peninsula Business Social
Center I Newport News, VA 21,923 100% Services
------------------ ---------------- ------- ---------- ---------------
WorldPac,
Peninsula Business International
Center II Newport News, VA 40,430 100% Tile & Marble
------------------ ---------------- ------- ---------- ---------------
Total/Weighted
Average 734,569 89.8%
------------------ ---------------- ------- ---------- ---------------
About CBL & Associates Properties, Inc.
CBL is one of the largest and most active owners and developers of
malls and shopping centers in the United States. CBL owns, holds
interests in or manages 136 properties, including 83 regional
malls/open-air centers. The properties are located in 27 states and
total 80.1 million square feet including 1.8 million square feet of
non-owned shopping centers managed for third parties. CBL currently
has thirteen projects under construction totaling 2.8 million square
feet including Pearland Town Center in Houston (Pearland), TX;
Settlers Ridge in Pittsburgh, PA; CBL Center II in Chattanooga, TN;
two lifestyle/associated centers, and eight mall
expansions/redevelopments. Headquartered in Chattanooga, TN, CBL has
regional offices in Boston (Waltham), MA, Dallas, TX, and St. Louis,
MO. Additional information can be found at http://cblproperties.com.
Information included herein contains "forward-looking statements"
within the meaning of the federal securities laws. Such statements are
inherently subject to risks and uncertainties, many of which cannot be
predicted with accuracy and some of which might not even be
anticipated. Future events and actual events, financial and otherwise,
may differ materially from the events and results discussed in the
forward-looking statements. The reader is directed to the Company's
various filings with the Securities and Exchange Commission, including
without limitation the Company's Annual Report on Form 10-K and the
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" incorporated by reference therein, for a
discussion of such risks and uncertainties.
Source: CBL & Associates Properties, Inc.
Contact: CBL & Associates Properties, Inc.
Katie Reinsmidt, 423-490-8301
Director of Investor Relations
katie_reinsmidt@cblproperties.com