TIAA-CREF and CBL & Associates Properties, Inc. (NYSE: CBL),
today announced a $1.09 billion real estate joint venture to invest
in market dominant shopping malls.
TIAA-CREF will invest in four of CBL’s market dominant shopping
malls: Oak Park Mall in Kansas City, KS; West County Center in St.
Louis, MO; CoolSprings Galleria in Nashville, TN; and Pearland Town
Center in Pearland, TX.
“We have been exploring joint venture opportunities for quite
some time and our patience and persistence has been rewarded,”
said Stephen Lebovitz, president and chief executive officer
of CBL & Associates Properties, Inc. “We believe TIAA-CREF is
the right partner for CBL and together have structured a mutually
beneficial venture. We are pleased to recognize the significant
enhancement in value for our portfolio through this
transaction.”
TIAA-CREF’s Global Real Estate group owns over $14 billion
(12/31/10) of primarily high-quality properties in the office,
retail, industrial and multifamily sectors across the U.S., Canada,
and Western Europe.
“This is an attractive opportunity to expand TIAA-CREF’s
long-standing footprint in the dominant regional retail sector,”
said Philip McAndrews, managing director and head of global real
estate transactions and joint ventures for TIAA-CREF. “The
investment underscores our continuing strategy to invest in
high-quality, well-leased and well-located retail properties with
strong and experienced partners, such as CBL. We believe super
regional malls are an essential part of a well-diversified
portfolio. These assets provide durable income streams along with
stable and enduring long term values.”
Lebovitz added, “This transaction will not only further our
deleveraging efforts by reducing our total debt by approximately
$480 million, it will also create a vehicle to pursue future
corporate growth opportunities.”
TIAA-CREF will receive a 50 percent pari passu interest in the
three enclosed malls, including Oak Park Mall, West County Center,
and CoolSprings Galleria and a 12% interest in Pearland Town
Center. In addition, TIAA will assume approximately $268 million of
property specific debt. CBL will continue to manage and lease the
properties. CBL anticipates closing on the transaction by third
quarter 2011. Eastdil Secured acted as CBL’s exclusive financial
advisor in arranging this joint venture.
About The Properties
West County Center in St. Louis (Des Peres), MO: West County
Center is a 1.3-million-square-foot super-regional mall anchored by
Missouri’s only Nordstrom as well as Macy’s, JCPenney and Barnes
& Noble. The mall is located on 51.0 acres with excellent
accessibility at the intersection of I-270 and Manchester Road (Hwy
100). West County Center was originally built in 1969 and underwent
a $230 million redevelopment in 2002 adding Nordstrom, three
parking structures and a new food court in the process. In 2009,
CBL redeveloped the former Lord & Taylor store into an open-air
wing anchored by Barnes & Noble and featuring upscale
restaurants including Bravo!, McCormick & Schmicks and
specialty retailers such as NorthFace and XXI.
Oak Park Mall in Kansas City (Overland Park), KS: Oak Park Mall
is a more than 1.5 million square-foot, high-performing shopping
destination featuring four department stores including the area’s
only Nordstrom as well as Dillard’s, Macy’s and JCPenney, plus more
than 185 specialty stores and restaurants. Specialty stores include
American Girl, Arden B., Banana Republic, Bare Escentuals, bebe,
Chico’s, Coach, Lacoste, LUSH, Naartjie Kids, Puma, Sephora,
Teavana, White House Black Market and XXI. Several restaurants are
located on the mall periphery including a recently opened Cheddar’s
Casual Cafe, Mimi’s Cafe, On The Border and Outback Steakhouse.
CoolSprings Galleria in Nashville (Franklin), TN: CoolSprings
Galleria is a more than one million square-foot super-regional
shopping destination anchored by Belk, Dillard’s, JCPenney, Macy’s
and Sears. The mall is conveniently located off I-65 at exit 69
Galleria Boulevard just fifteen miles south of Nashville. The
shopping center features more than 150 specialty stores including
Bare Escentuals, Banana Republic, Coldwater Creek, Johnston &
Murphy, Pottery Barn, and Williams-Sonoma.
Pearland Town Center in Houston (Pearland), TX: Pearland Town
Center offers premium retail, residential, office and hotel space
in an open-air, pedestrian-friendly environment. Conveniently
located at FM 518 and Highway 288, Pearland Town Center is situated
on 147 acres of premium retail space within the greater Houston
metropolitan corridor. The center features a 718,000-square-foot
open-air lifestyle center anchored by fashion department stores
Dillard’s and Macy’s, as well as Barnes & Noble. Pearland Town
Center also features a wide selection of retailers and restaurants
including Coldwater Creek, Eddie Bauer, BJ's Restaurant &
Brewhouse, Aéropostale, Pac Sun, and more. A 110-room, four-story
Courtyard by Marriott hotel is located above the center’s retail
shops near Macy’s. In addition, Pearland Town Center offers office
and multi-family residential space above the retail, a 25-acre
lake, and miles of walking paths and parks, creating a truly urban
experience.
About TIAA-CREF Global Real
Estate
TIAA-CREF is one of the largest institutional real estate
investors in the U.S., with an approximately $46 billion global
portfolio of direct and indirect investments (12/31/10). TIAA-CREF
originated its first commercial mortgage in 1934 and began direct
investment in commercial real estate in 1947. Today, on behalf of
individuals, public and private institutions in the U.S. and
abroad, TIAA-CREF Global Real Estate directly owns over $14 billion
(12/31/10) of primarily high-quality properties in the office,
retail, industrial and multifamily sectors across the U.S., Canada,
and Western Europe.
About TIAA-CREF
TIAA-CREF is a national financial services organization and the
leading provider of retirement services in the academic, research,
medical and cultural fields with $453 billion in combined assets
under management (12/31/10).
TIAA-CREF Individual & Institutional Services, LLC and
Teachers Personal Investors Services, Inc., members FINRA,
distribute securities products.
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 157 properties, including 85 regional
malls/open-air centers. The properties are located in 26 states and
total 84.9 million square feet including 3.4 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.
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 CBL's various filings with the Securities and Exchange
Commission, including without limitation the CBL'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 and
uncertainties.
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