CBL Properties, a real estate investment trust that owns Class B and C malls, plans to sell more noncore retail properties as it pays down debt and works to invest in its overall portfolio, according to CEO Stephen Lebovitz.
The Chattanooga, Tennessee-based REIT recently sold Alamance Crossing, a 451,582-square-foot regional lifestyle center in Burlington, North Carolina, for $37.2 million as part of its program to recycle capital and invest in its core properties. The proceeds from the sale of some malls that were financed by a term loan enabled CBL to reduce the principal balance and be in position to extend the financing to late 2027, the company said.
"Getting that additional runway" and lowering the REIT's leverage by selling noncore malls "allows us to recycle capital" and invest in and upgrade CBL's overall portfolio, Lebovitz said in an interview. CBL’s portfolio contains 88 properties totaling 55.4 million square feet across 20 states.
"We've taken our blows," he said, "but we're really on the upswing now." CBL filed for Chapter 11 bankruptcy protection in November 2020 and emerged from the process about a year later.
Some of CBL's investments in its properties will include continuing its redevelopment program centered on adding new uses at its properties and taking spots formerly occupied by anchors for new uses in the spaces, Lebovitz said.
Watch the video for Lebovitz's outlook on Class B and C malls.