CBL Properties Provides Update on Sears and Anchor Redevelopment Program
October 16 2018 - 6:30PM
Business Wire
CBL Properties (NYSE: CBL) today provided an update on its
redevelopment efforts related to Sears stores in its portfolio.
“We have been preparing for an eventual Sears bankruptcy since
2013, when we purchased two Sears locations and transformed them
into dining, retail and entertainment destinations,” said Stephen
Lebovitz, chief executive officer. “The Sears stores in our markets
are well-located with excellent visibility, access and
infrastructure. As a result, we have been able to attract high
quality replacement users and new concepts that had not previously
considered a mall environment. Additionally, we are able to pursue
a number of non-traditional uses through partnerships. These other
developers, be it multi-family, hotel or other use, recognize the
immense value of these locations and are coming to us to take
advantage of the great real estate that’s becoming available.”
Yesterday Sears announced anticipated store closures as part of
its Chapter 11 bankruptcy filing. CBL stores on the closure list
include Hamilton Place in Chattanooga, TN; Jefferson Mall in
Louisville, KY; Cross Creek Mall in Fayetteville, NC; Imperial
Valley in El Centro, CA (location owned by a third party); Honey
Creek Mall in Terre Haute, IN; and Governor’s Square Mall in
Clarksville, TN (property owned in a 50/50 joint venture).
CBL proactively purchased the Sears locations at Hamilton Place,
Jefferson Mall and Cross Creek in 2017 and has redevelopment plans
in process for all three locations. In anticipation of a bankruptcy
or additional closures by Sears, CBL has been actively marketing
locations to replacement users. CBL has leases executed,
out-for-signature or under negotiation for a majority of the
locations leased by Sears in its portfolio. Additionally, CBL is
pursuing opportunities to utilize ground leases, outparcel land
sales and joint ventures to enhance returns while limiting the
required investment and will also use construction loans for select
projects to reduce the equity commitment.
Over the last three years, more than 35 redevelopment projects
have been completed or are underway in the CBL portfolio, including
nearly two dozen anchor store redevelopments, furthering the
Company’s vision of creating a portfolio of diverse suburban town
centers. Current projects include:
- Brookfield Square, Brookfield, WI –
former Sears is being transformed into an entertainment and dining
destination with Marcus Theaters, Whirlyball entertainment center,
a fitness operator and restaurants. A portion of the site was sold
for development of a hotel and conference center.
- Jefferson Mall, Louisville, KY – Round
1 will open in a former Macy’s location later this year.
- York Galleria, York, PA – Earlier this
year, Marshalls joined H&M & Gold’s Gym in the former
JCPenney location.
- Eastland Mall, Forsyth, IL – H&M,
Outback and Planet Fitness are opening in the former JCPenney
location.
Through these redevelopment efforts as well as dispositions of
select assets, CBL has reduced its exposure to Sears and other
underperforming anchors significantly. At year-end 2015, CBL had 53
Sears operating in its portfolio. With the planned closures
announced yesterday, by year-end 2018 CBL anticipates 21 operating
Sears stores in its core portfolio, including five locations leased
by Sears and 16 owned by Sears or third parties.
About CBL Properties
Headquartered in Chattanooga, TN, CBL Properties owns and
manages a national portfolio of market-dominant properties located
in dynamic and growing communities. CBL’s portfolio is comprised of
114 properties totaling 71.9 million square feet across 26 states,
including 73 high-quality enclosed, outlet and open-air retail
centers and 12 properties managed for third parties. CBL
continuously strengthens its company and portfolio through active
management, aggressive leasing and profitable reinvestment in its
properties. For more information visit 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20181016006109/en/
CBL PropertiesInvestor Contact:Katie Reinsmidt,
423-490-8301Executive Vice President & Chief Investment
OfficerKatie.Reinsmidt@cblproperties.comorMedia Contact:Stacey
Keating, 423-490-8361Director of Public Relations & Corporate
CommunicationsStacey.Keating@cblproperties.com
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