An offshore investor along with Atlanta-based partner Hendon Properties has closed on its acquisition of three malls and three associated shopping centers across three states in a portfolio sale totaling $176 million from CBL & Associates Properties, Inc. (NYSE: CBL
The transaction included Georgia Square Mall and Georgia Square Plaza in Athens, GA; Panama City Mall and The Shoppes at Panama City in Panama City, FL; and the Rivergate Mall and Village at Rivergate located in Nashville, TN.
The assets were roughly 98 percent leased at the time of sale.
Georgia Mall was built in 1980 on 97 acres in Clarke County, outside of Atlanta. It totals 671,121 square feet. The 603,084-square-foot Panama City Mall was constructed in 1976 on 54 acres in Bay County, adjacent to the 55,721-square-foot Shoppes that were completed in 2004. The 1.1 million-square-foot Rivergate Mall was built in 1971 on 98 acres in Davidson County, while the 167,107-square-foot Village center was constructed in 1980 on 14.6 acres.
"We are pleased to complete the disposition of these assets, generating substantial equity and demonstrating our continued ability to effectively execute our capital plan," said Stephen Lebovitz, president and chief executive officer of CBL. "When combined with the $209 million in ATM proceeds generated through mid-year as well as $44 million from the sale of office buildings completed earlier this year, we have raised more than $425 million in equity year-to-date. This deliberate approach has allowed us to significantly reduce debt while minimizing dilution and strengthening our core portfolio."
Net proceeds from the sale were used to reduce outstanding balances on CBL's unsecured lines of credit. The company announced a net impact from the sale of approximately 2 cents per share to 2013 Funds from Operations (FFO).
The buyer has retained Herndon Properties to lease and manage the properties.
Margaret Caldwell and Kris Cooper with Jones Lang LaSalle represented the seller, one of the largest retail owners in the country with a portfolio of 154 properties including 93 regional malls and open-air centers in 31 states.
Please see CoStar COMPS #2828050 for additional information on this transaction.