CBL Completes Acquisition of Remaining Interest in Kirkwood Mall in Bismarck, ND
CHATTANOOGA, Tenn.--(BUSINESS WIRE)-- CBL & Associates Properties, Inc. (CBL), today announced that it has completed the acquisition of the remaining 51% interest in Kirkwood Mall in Bismarck, ND.
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 income.
Kirkwood Mall is located in North Dakotas 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. Bismarcks 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 Herbergers, Keating Furniture, JCPenney, Scheels All Sport and Target and features a strong line-up of mall retailers and restaurants such as The Buckle, Chicos, Justice, The Childrens Place and Victorias 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 and uncertainties.
CBL & Associates Properties, Inc.
Katie Reinsmidt, 423-490-8301
Senior Vice President - Investor Relations and Corporate Investments
Source: CBL & Associates Properties, Inc.Copyright Business Wire 2013