CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
CBL & Associates Properties, Inc. (NYSE:CBL) announced future
redevelopment/replacement plans for JCPenney anchor locations in the CBL
portfolio that are expected to close in 2014.
“One of our most attractive investments coming out of the recession has
been to improve the performance of our properties through redeveloping
underperforming anchor locations. The opportunities created by the four
JCPenney closures announced today fit perfectly with that objective,”
said Stephen Lebovitz, president & CEO. “While we have been encouraged
by JCPenney’s recent improvements in sales and traffic, we have been
anticipating certain store closures to occur. As we said in our most
recent earnings call, we have been proactively engaging in discussions
and gauging retail demand with this in mind and are pleased to announce
strong interest for the locations expected to close in 2014. Our next
steps will be to move forward with negotiations with retailers and
finalize redevelopment plans. Once leases are signed, we will share
specific retail names joining each mall, as well as construction and
opening timelines. The list of retailers interested in these specific
locations includes sporting goods, arts and crafts and other box
retailers, as well as a traditional department store for one location,
all of which will enhance the performance of the malls overall.”
JCPenney announced its intention to close four locations in the CBL
portfolio at Hickory Point Mall in Forsyth, IL, Janesville Mall in
Janesville, WI, Wausau Center in Wausau, WI, and Northgate Mall in
Chattanooga, TN. CBL anticipates store closures to occur in the second
quarter. Three locations are leased from CBL. The Northgate Mall store
is leased from a third party and CBL will work with the building owner
to facilitate its redevelopment. The stores aggregate approximately
499,000 square feet and $1.4 million in gross annual rent. JCPenney will
continue to pay rent until lease expiration.
Lebovitz added, “As part of our review process, we analyzed the
co-tenancy provisions in small shops leases at these properties and
determined that the financial exposure is immaterial. The significant
and diverse retail demand for each location demonstrates the strength
and resilience of our dominant mall properties. We look forward to the
improved growth rates generated from these enhancements.”
Over the past three years, CBL has added or redeveloped more than 75
anchor and junior anchor locations to its portfolio comprising more than
2.2 million square feet. Today, other than locations under
redevelopment, CBL has no vacant anchor locations in its core portfolio.
The JCPenney stores that are closing are all prominently located in
their malls with convenient parking and prime visibility, which will
facilitate their repurposing. Based on CBL’s extensive track record of
successful anchor redevelopment, similar projects have generally
required 12-24 months to complete and an investment of $5–10 million
generating initial unleveraged returns in the range of 7-10%. More
specific cost and return information regarding the four locations will
be announced as plans are finalized.
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 150 properties, including 88 regional malls/open-air centers.
The properties are located in 29 states and total 84.4 million square
feet including 4.4 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.
Forward-Looking Statements
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" included 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.