NEW YORK & CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
TIAA-CREF and CBL & Associates Properties, Inc. (NYSE: CBL), today
announced a $1.09 billion real estate joint venture to invest in market
dominant shopping malls.
TIAA-CREF will invest in four of CBL’s market dominant shopping malls: Oak
Park Mall in Kansas City, KS; West
County Center in St. Louis, MO; CoolSprings
Galleria in Nashville, TN; and Pearland
Town Center in Pearland, TX.
“We have been exploring joint venture opportunities for quite some time
and our patience and persistence has been rewarded,” said Stephen
Lebovitz, president and chief executive officer of CBL & Associates
Properties, Inc. “We believe TIAA-CREF is the right partner for CBL and
together have structured a mutually beneficial venture. We are pleased
to recognize the significant enhancement in value for our portfolio
through this transaction.”
TIAA-CREF’s Global Real Estate group owns over $14 billion (12/31/10) of
primarily high-quality properties in the office, retail, industrial and
multifamily sectors across the U.S., Canada, and Western Europe.
“This is an attractive opportunity to expand TIAA-CREF’s long-standing
footprint in the dominant regional retail sector,” said Philip
McAndrews, managing director and head of global real estate transactions
and joint ventures for TIAA-CREF. “The investment underscores our
continuing strategy to invest in high-quality, well-leased and
well-located retail properties with strong and experienced partners,
such as CBL. We believe super regional malls are an essential part of a
well-diversified portfolio. These assets provide durable income streams
along with stable and enduring long term values.”
Lebovitz added, “This transaction will not only further our deleveraging
efforts by reducing our total debt by approximately $480 million, it
will also create a vehicle to pursue future corporate growth
opportunities.”
TIAA-CREF will receive a 50 percent pari passu interest in the three
enclosed malls, including Oak Park Mall, West County Center, and
CoolSprings Galleria and a 12% interest in Pearland Town Center. In
addition, TIAA will assume approximately $268 million of property
specific debt. CBL will continue to manage and lease the properties. CBL
anticipates closing on the transaction by third quarter 2011. Eastdil
Secured acted as CBL’s exclusive financial advisor in arranging this
joint venture.
About The Properties
West County Center in St. Louis (Des Peres), MO: West County Center is a
1.3-million-square-foot super-regional mall anchored by Missouri’s only
Nordstrom as well as Macy’s, JCPenney and Barnes & Noble. The mall is
located on 51.0 acres with excellent accessibility at the intersection
of I-270 and Manchester Road (Hwy 100). West County Center was
originally built in 1969 and underwent a $230 million redevelopment in
2002 adding Nordstrom, three parking structures and a new food court in
the process. In 2009, CBL redeveloped the former Lord & Taylor store
into an open-air wing anchored by Barnes & Noble and featuring upscale
restaurants including Bravo!, McCormick & Schmicks and specialty
retailers such as NorthFace and XXI.
Oak Park Mall in Kansas City (Overland Park), KS: Oak Park Mall is a
more than 1.5 million square-foot, high-performing shopping destination
featuring four department stores including the area’s only Nordstrom as
well as Dillard’s, Macy’s and JCPenney, plus more than 185 specialty
stores and restaurants. Specialty stores include American Girl, Arden
B., Banana Republic, Bare Escentuals, bebe, Chico’s, Coach, Lacoste,
LUSH, Naartjie Kids, Puma, Sephora, Teavana, White House Black Market
and XXI. Several restaurants are located on the mall periphery including
a recently opened Cheddar’s Casual Cafe, Mimi’s Cafe, On The Border and
Outback Steakhouse.
CoolSprings Galleria in Nashville (Franklin), TN: CoolSprings Galleria
is a more than one million square-foot super-regional shopping
destination anchored by Belk, Dillard’s, JCPenney, Macy’s and Sears. The
mall is conveniently located off I-65 at exit 69 Galleria Boulevard just
fifteen miles south of Nashville. The shopping center features more than
150 specialty stores including Bare Escentuals, Banana Republic,
Coldwater Creek, Johnston & Murphy, Pottery Barn, and Williams-Sonoma.
Pearland Town Center in Houston (Pearland), TX: Pearland Town Center
offers premium retail, residential, office and hotel space in an
open-air, pedestrian-friendly environment. Conveniently located at FM
518 and Highway 288, Pearland Town Center is situated on 147 acres of
premium retail space within the greater Houston metropolitan corridor.
The center features a 718,000-square-foot open-air lifestyle center
anchored by fashion department stores Dillard’s and Macy’s, as well as
Barnes & Noble. Pearland Town Center also features a wide selection of
retailers and restaurants including Coldwater Creek, Eddie Bauer, BJ's
Restaurant & Brewhouse, Aéropostale, Pac Sun, and more. A 110-room,
four-story Courtyard by Marriott hotel is located above the center’s
retail shops near Macy’s. In addition, Pearland Town Center offers
office and multi-family residential space above the retail, a 25-acre
lake, and miles of walking paths and parks, creating a truly urban
experience.
About TIAA-CREF Global Real Estate
TIAA-CREF is one of the largest institutional real estate investors in
the U.S., with an approximately $46 billion global portfolio of direct
and indirect investments (12/31/10). TIAA-CREF originated its first
commercial mortgage in 1934 and began direct investment in commercial
real estate in 1947. Today, on behalf of individuals, public and private
institutions in the U.S. and abroad, TIAA-CREF Global Real Estate
directly owns over $14 billion (12/31/10) of primarily high-quality
properties in the office, retail, industrial and multifamily sectors
across the U.S., Canada, and Western Europe.
About TIAA-CREF
TIAA-CREF is a national financial services organization and the leading
provider of retirement services in the academic, research, medical and
cultural fields with $453 billion in combined assets under management
(12/31/10).
TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal
Investors Services, Inc., members FINRA, distribute securities products.
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 157 properties, including 85 regional malls/open-air centers.
The properties are located in 26 states and total 84.9 million square
feet including 3.4 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
CBL's various filings with the Securities and Exchange Commission,
including without limitation the CBL'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.
C50946
Source: CBL & Associates Properties, Inc.
Contact:
TIAA-CREF
Abby Aylman Cohen, 212-916-4381
aacohen@tiaa-cref.org
or
CBL
& Associates Properties, Inc.
Katie Reinsmidt, 423-490-8301
katie_reinsmidt@cblproperties.com