CBL Properties Acquires Full Ownership of Top Malls

By Tamara Parker • Tuesday, December 24 10:13 • Permanent Link

CBL Properties (NYSE: CBL) has recently acquired full ownership of three of its top properties, namely Coolsprings Galleria in Nashville, TN, Oak Park Mall in Kansas City, KS, and West County Center in St. Louis, MO. The acquisition was made by purchasing its partner's 50% joint venture interests for a total cash consideration of $22.5 million, in addition to assuming an aggregate $266.7 million in three non-recourse loans secured individually by each of the assets.

Stephen D. Lebovitz, CBL's CEO, expressed the company's pleasure in gaining complete control of these high-performing assets. He emphasized the immediate accretive nature of the transaction and the near and long-term value-creation opportunities, particularly the comprehensive densification plans underway at Coolsprings Galleria. The acquisition allows CBL to fully execute its growth vision and reap 100% of the future financial gains from these malls.

Additionally, CBL has completed the extension of non-recourse loans secured by West County Center and Oak Park Mall. The loan for West County Center has been extended to December 2026 at the existing interest rate, while the loan for Oak Park Mall has been extended to October 2030 at a fixed 5% interest rate. Coolsprings Galleria enjoys favorable in-place non-recourse financing with an interest rate of 4.84% maturing in May 2028.

Coolsprings Galleria, a super-regional shopping destination spanning over one million square feet, features more than 150 stores, including popular brands like Apple, American Girl, The Cheesecake Factory, H&M, and Williams-Sonoma. It is anchored by Belk, Dillard’s, JCPenney, and Macy’s. Recent additions to the center include Garage, The Normal Brand, and Barnes & Noble, with Primark set to open in 2025.

Oak Park Mall, located in Overland Park, Kansas, is the exclusive home in the Kansas City metro area to Nordstrom, Lush, Oakley, and over 185 specialty stores, boutiques, and eateries.

The acquisition of these properties marks a significant step forward for CBL Properties, providing it with opportunities for future financial gains and value creation. As a result of these announcements, the company's shares have moved 0.6% on the market, and are now trading at a price of $29.54. Check out the company's full 8-K submission here.

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