Acquisition Provides Strategic Redevelopment Opportunity
CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
CBL & Associates Properties, Inc. (NYSE: CBL) today announced that it
has signed a definitive agreement to acquire Northgate Mall in CBL’s
hometown of Chattanooga, TN, for $11.5 million, in cash. The mall was
listed for sale through an online auction. CBL anticipates closing on
the transaction by October 6th.
CBL’s President and Chief Executive Officer, Stephen Lebovitz, commented
on the transaction, “This transaction represents a unique and special
opportunity for us to grow our presence in our hometown. Since CBL was
formed in 1978 we have time and again demonstrated our tremendous
confidence in Chattanooga by investing in its growth. The acquisition of
Northgate Mall is just another example of that commitment.”
Lebovitz added, “Northgate Mall is well-located in a growing part of
Chattanooga, with tremendous access and visibility. We believe that the
property can be better positioned to meet the growing need for retail in
the area. We are already exploring the best way to reposition the center
to serve the area and will look forward to making additional
announcements as plans solidify.”
Following the close of the acquisition, CBL plans to revitalize the
property through redevelopment, which may include the addition of junior
anchor stores and restaurants and repurposing the adjacent community
center. CBL envisions creating a destination that will better serve the
area north of the Tennessee River while complementing Hamilton Place
Mall’s position as the dominant fashion outlet in the market.
About Northgate Mall
Northgate Mall is an 823,000-square-foot enclosed regional mall located
on Highway 153 and Hixson Pike/State Route 319 in CBL’s hometown of
Chattanooga, Tennessee. Chattanooga has been experiencing tremendous
growth with several major new employers entering the area, including
North America’s only Volkswagen manufacturing plant. Northgate Mall is
anchored by Belk, JC Penney and Sears and offers 60 specialty shops and
restaurants. The property also features a freestanding 14-screen
state-of-the-art Carmike Cinema and a 70,000-square-foot community
center occupied by TJ Maxx and Catherine’s. The property was originally
developed in 1972 by Arlen Shopping Center Group (“Arlen”) under the
direction of Charles B. Lebovitz. In 1978, Lebovitz and five associates
left Arlen to form CBL & Associates. Northgate Mall underwent
renovations in 1991 and 1997 and was expanded between 2005 and 2008.
Northgate Mall is currently 91% leased.
CBL owns and manages Hamilton Place Mall, a 1.3-million-square-foot
dominant super-regional enclosed mall as well as five associated centers
and two office buildings, including its headquarters, in the Chattanooga
market.
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 158 properties, including 85 regional malls/open-air centers.
The properties are located in 27 states and total 85.3 million square
feet including 3.6 million square feet of non-owned shopping centers
managed for third parties. Headquartered in Chattanooga, TN, CBL has
regional offices in Boston (Waltham), MA, Dallas (Irving), TX, and St.
Louis, MO. Additional information can be found at 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.
CBL & Associates Properties, Inc.
Katie Reinsmidt
Vice
President - Corporate Communications and Investor Relations
423-490-8301
katie_reinsmidt@cblproperties.com
Source: CBL & Associates Properties, Inc.