CBL to Acquire Northgate Mall in Chattanooga, TN
September 22 2011 - 3:00PM
Business Wire
CBL & Associates Properties, Inc. (NYSE: CBL) today
announced that it has signed a definitive agreement to acquire
Northgate Mall in CBL’s hometown of Chattanooga, TN, for $11.5
million, in cash. The mall was listed for sale through an online
auction. CBL anticipates closing on the transaction by October
6th.
CBL’s President and Chief Executive Officer, Stephen Lebovitz,
commented on the transaction, “This transaction represents a unique
and special opportunity for us to grow our presence in our
hometown. Since CBL was formed in 1978 we have time and again
demonstrated our tremendous confidence in Chattanooga by investing
in its growth. The acquisition of Northgate Mall is just another
example of that commitment.”
Lebovitz added, “Northgate Mall is well-located in a growing
part of Chattanooga, with tremendous access and visibility. We
believe that the property can be better positioned to meet the
growing need for retail in the area. We are already exploring the
best way to reposition the center to serve the area and will look
forward to making additional announcements as plans solidify.”
Following the close of the acquisition, CBL plans to revitalize
the property through redevelopment, which may include the addition
of junior anchor stores and restaurants and repurposing the
adjacent community center. CBL envisions creating a destination
that will better serve the area north of the Tennessee River while
complementing Hamilton Place Mall’s position as the dominant
fashion outlet in the market.
About Northgate Mall
Northgate Mall is an 823,000-square-foot enclosed regional mall
located on Highway 153 and Hixson Pike/State Route 319 in CBL’s
hometown of Chattanooga, Tennessee. Chattanooga has been
experiencing tremendous growth with several major new employers
entering the area, including North America’s only Volkswagen
manufacturing plant. Northgate Mall is anchored by Belk, JC Penney
and Sears and offers 60 specialty shops and restaurants. The
property also features a freestanding 14-screen state-of-the-art
Carmike Cinema and a 70,000-square-foot community center occupied
by TJ Maxx and Catherine’s. The property was originally developed
in 1972 by Arlen Shopping Center Group (“Arlen”) under the
direction of Charles B. Lebovitz. In 1978, Lebovitz and five
associates left Arlen to form CBL & Associates. Northgate Mall
underwent renovations in 1991 and 1997 and was expanded between
2005 and 2008. Northgate Mall is currently 91% leased.
CBL owns and manages Hamilton Place Mall, a
1.3-million-square-foot dominant super-regional enclosed mall as
well as five associated centers and two office buildings, including
its headquarters, in the Chattanooga market.
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 158 properties, including 85 regional
malls/open-air centers. The properties are located in 27 states and
total 85.3 million square feet including 3.6 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 and
uncertainties.
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