CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
CBL & Associates Properties, Inc. (NYSE:CBL) announced today that it had
closed on the acquisition of Mayfaire Town Center and Community Center,
the premier open-air center located in the affluent coastal market of
Wilmington, NC. The property was acquired for a total cash purchase
price of $192 million from a partnership between BrodyCo Inc. and Zimmer
Development Company.
“Mayfaire Town Center represents a tremendous opportunity for CBL. While
we have not prioritized acquisitions recently from a capital allocation
point of view, this asset is a perfect fit with our portfolio and the
goals of our portfolio transformation strategy,” said Stephen D.
Lebovitz, president and chief executive officer. “This market-dominant
center serves as the preeminent retail destination in the three-county
region with no comparable competition for more than 100 miles. Its sales
place it in our Tier 1 asset pool, and the center has huge potential for
future growth in both sales and income given the in-place single-digit
occupancy cost, opportunities to upgrade the retailer and restaurant mix
and the near-term expansion on available land. It will also enjoy a
synergistic relationship with our other assets in the Carolinas,
primarily Friendly Center in Greensboro, NC, one of our most successful
properties generating strong growth in NOI, sales and consistent demand
from high quality retailers, including the recently opened Lululemon
store. We expect similar success from Mayfaire Town Center and are
extremely excited about its addition to the CBL portfolio.”
Lebovitz added, “We anticipate funding this acquisition on a
leverage-neutral basis. Year to date, we have completed nearly $60
million in non-core asset sales and expect to fund the remainder through
additional near-term non-core asset transactions.”
Mayfaire Town Center is a 610,000-square-foot open-air center anchored
by Belk and a 16-screen Regal Cinema, featuring an IMAX theater, as well
as junior anchors, including The Fresh Market, Cost Plus/World Market,
Pottery Barn, ULTA and Michael’s. The center offers leading retail
brands, such as Chico’s, Francesca’s Collection, J. Crew, White House |
Black Market and Williams Sonoma and restaurants, including Brixx Wood
Fired Pizza, Which Wich and Zoe’s Kitchen. The acquisition also includes
developable land accommodating up to 75,000 square feet of additional
retail.
Mayfaire Community Center is a 210,000-square-foot center anchored by a
high-performing Harris Teeter, Dick’s Sporting Goods, Marshalls and
PetSmart as well as 48,000 square feet of retailer shops, including
Panera Bread Co., New Balance, Five Guys Burgers & Fries and Verizon.
Mayfaire Town Center and Community Center are 92.5% occupied. The center
generates more than $200 million in sales annually with shop sales of
$385 per square foot.
The center is ideally located along Military Cutoff Road near its
intersection with Eastwood Road (US Route 74), approximately two miles
from the major I-40 interchange. Eastwood Road is the main thoroughfare
that leads to the popular beach destination of Wrightsville Beach, where
median home prices are nearly $1.0 million. The city of Wilmington has a
diverse and growing economic base. Tourism contributes nearly $1 billion
annually to the three-county area. The area’s luxury beaches,
first-class golf courses and prosperous community, including the
exclusive Figure Eight Island, attract a thriving dedicated tourist
population with over 1.5 million visitors annually, adding to the rising
existing population of over 360,000 people. Major employers include the
New Hanover County Regional Health System, New Hanover County Schools,
General Electric and Verizon. Wilmington is notably one of the top ports
in the United States, handling more than $7 billion in cargo annually.
The market has an active student population, serving as home to
UNC-Wilmington with more than 14,000 students and Cape Fear Community
College, the largest community college in the state with more than
27,000 students. Wilmington also boasts the largest film studio in the
United States outside of Los Angeles, consistently ranking it as one of
the most popular filmmaking locations in the nation.
Mayfaire Town Center and Community Center form the heart of a 400-acre
master-planned development featuring 84 condominiums located above
first-floor retail called Mayfaire Townview, which contribute to the
active live, work, play environment. Additionally, the development
includes 264 Class-A apartments called The Reserve at Mayfaire, 208
luxury condominiums called The Village at Mayfaire, Mayfaire Business
Park, a 300,000-square-foot Class-A business park, and Parkside
Residential Development, a 30-acre single-family residential development
that includes 108 home sites with prices of up to $1.0 million.
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 148 properties, including 90 regional malls/open-air centers.
The properties are located in 30 states and total 84.2 million square
feet including 6.5 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" included therein, for a discussion of such risks
and uncertainties.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150618006024/en/
CBL & Associates Properties, Inc.
Investor Contact:
Katie
Reinsmidt, 423-490-8301
Senior Vice President - Investor Relations
and Corporate Investments
katie.reinsmidt@cblproperties.com
or
Media
Contact:
Stacey Keating, 423-490-8361
Corporate Marketing
Specialist
stacey.keating@cblproperties.com
Source: CBL & Associates Properties, Inc.