CHATTANOOGA, Tenn.--(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.