CBL Completes Acquisition of Remaining Interest in Kirkwood Mall in
CHATTANOOGA, Tenn. -- April 9, 2013
CBL & Associates Properties, Inc. (NYSE: CBL), today announced that it has
completed the acquisition of the remaining 51% interest in Kirkwood Mall in
In December 2012, CBL acquired a 49% non-controlling interest in Kirkwood
Mall. In conjunction with the acquisition of the remaining interest, CBL
assumed the $40.4 million non-recourse loan secured by the property, which
bears a fixed interest rate of 5.75% and matures in April 2018.
“We are pleased to complete the acquisition of the remaining 51% interest in
Kirkwood Mall,” commented Stephen Lebovitz, president and CEO of CBL. “The
mall is a terrific addition to our portfolio and is experiencing positive
trends, including double-digit increases in sales to over $400 per square foot
in 2012. The center also provides meaningful opportunities to grow the income
stream through rent gains from rollovers, occupancy improvements and ancillary
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 88% occupied at December 31, 2012. Sales per square foot
at the center have increased more than 15% to over $409 per square foot for
2012. The mall offers both near- and long-term growth potential with low
in-place occupancy cost 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 interests in or manages
159 properties, including 96 regional malls/open-air centers. The properties
are located in 27 states and total 92.9 million square feet including 10.5
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" 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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