Super-Regional Mall Draws Shoppers from More Than 100 Miles
CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
CBL & Associates Properties, Inc. (NYSE: CBL), today announced the
acquisition of Dakota Square Mall in Minot, ND. CBL acquired the
property from the Lightstone Group.
“Dakota Square Mall is a textbook example of our dominant mall strategy.
The center holds an unrivaled franchise position within a growing and
economically diverse regional market. We are pleased to enhance our
portfolio with this acquisition,” stated Stephen Lebovitz, president and
CEO of CBL & Associates Properties, Inc. “Dakota Square Mall offers
significant immediate and long-term upside potential with below-average
occupancy costs as well as opportunities for conversions of temporary
tenants to permanent leases. We anticipate adding value through these
opportunities as well as capitalizing on the substantial growth the
market is experiencing.”
Dakota Square Mall was acquired for a total consideration of $91.475
million, including the assumption of a $59.0 million loan. The loan
matures in November 2016 and bears a fixed interest rate of 6.23%.
Dakota Square Mall is a single-level, enclosed super-regional mall
located in Minot, ND. The 622,000-square-foot mall is anchored by a
nine-screen Carmike Cinema, Herberger’s, JCPenney, Sears, Target, Barnes
& Noble and Scheels All Sports. The mall generated sales of $470 per
square foot for the twelve months ended March 31, 2012. As of March 31,
2012, the center was 94% occupied, offering a great selection of stores
and restaurants including American Eagle Outfitters, Bath & Body Works,
The Buckle, Victoria’s Secret, Footlocker, and Grizzly’s Grill & Saloon.
The 176-room Sleep Inn Suites & Hotel and Splashdown Dakota Super Slides
indoor water park is located adjacent to the mall, connected with an
interior mall entrance.
Dakota Square Mall serves a wide trade area reaching across the Canadian
border into the Canadian provinces of Saskatchewan and Manitoba. The
mall was originally built in 1980 and expanded several times, including
the addition of Barnes & Noble in 2008 and a new nine-Screen Carmike
Cinema. Sheels All Sports recently completed a 9,000-square-foot
expansion to its store.
Minot has experienced significant growth in recent years. A major
contributor to the Minot economy, the Minot Air Force Base has benefited
from the Defense Base Closure and Realignment Commission (BRAC) and is
one of the only ICBM bases in the United States. In addition, Minot is
located near the Bakken Shale Formation, with oil reserves estimated at
24 billion barrels. With new rock-fracturing technology made available
in 2008, Bakken production has boomed. As a result, the area has
experienced a tremendous influx of population. The unemployment rate in
Minot is one of the Nation’s lowest at 3.6%.
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 160 properties, including 90 regional malls/open-air centers.
The properties are located in 27 states and total 87.3 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, 423-490-8301
Vice
President - Corporate Communications and Investor Relations
katie_reinsmidt@cblproperties.com
Source: CBL & Associates Properties, Inc.