CBL Announces Acquisition of Interest in Kirkwood Mall in Bismarck, ND
CHATTANOOGA, Tenn. -- January 10, 2013
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
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 atcblproperties.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
CBL & Associates Properties, Inc.
Katie Reinsmidt, 423-490-8301
Senior Vice President - Investor Relations and Corporate Investments
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