CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
CBL & Associates Properties, Inc. (NYSE: CBL), today announced that it
plans to acquire Kirkwood Mall in Bismarck, ND, from Radiant Partners.
In December 2012, CBL completed the acquisition of a 49% non-controlling
interest in Kirkwood Mall. Additionally, CBL has executed an agreement
to acquire the remaining 51% interest. CBL anticipates closing on the
remaining 51% interest within 90 days (subject to lender approval),
including the assumption of a $40.4 million non-recourse loan secured by
the property, which bears a fixed interest rate of 5.75% and matures in
April 2018.
“The acquisition of Kirkwood Mall will add a high-quality and growing
property to our portfolio of market-dominant regional malls,” commented
Stephen Lebovitz, president and CEO of CBL. “Similar to Dakota Square
Mall in Minot, ND, which we acquired in 2012, Kirkwood Mall is enjoying
remarkable growth from its proximity to the Bakken Formation oil
reserves. We anticipate increasing the net operating income from the
center through near- and long-term opportunities, including rent growth
from roll-over leases as well as occupancy improvements and development
of peripheral property.”
Kirkwood Mall is located in North Dakota’s state capital of Bismarck.
The local economy has grown tremendously in recent years as a result of
its proximity to the Bakken Formation. The state of North Dakota has the
lowest unemployment rate in the country and is one of only a few states
with a budget surplus. Bismarck’s unemployment rate is estimated to be
less than 4%.
The mall is situated on 68 acres and serves a broad trade area with the
nearest competition located more than 100 miles away. The
850,000-square-foot mall was originally developed in 1971 and was last
renovated in 2002. The mall is anchored by Herberger’s, Keating
Furniture, JCPenney, Scheel’s All Sport and Target and features a strong
line-up of mall retailers and restaurants such as The Buckle, Chico’s,
Justice, The Children’s Place and Victoria’s Secret. The mall was 87.9%
occupied at September 30, 2012. Sales per square foot at the center have
increased more than 15% to over $400 per square foot for 2012. The mall
offers both near- and long-term growth potential with low in-place
occupancy cost of approximately 9.2% as well as lease-up opportunities.
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 interest in
or manages 163 properties, including 94 regional malls/open-air centers.
The properties are located in 27 states and total 93.8 million square
feet including 9.4 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
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
Senior
Vice President - Investor Relations and Corporate Investments
katie_reinsmidt@cblproperties.com
Source: CBL & Associates Properties, Inc.