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CBL & Associates Acquiring Four Regional Malls for $340M

CHATTANOOGA, TN-Located in Fayetteville, NC, and the Virginia cities of Lynchburg, Colonial Heights and Roanoke, the malls comprise 3.25 million sf that is currently 90.9% occupied. CBL expects the properties to generate an initial yield of 8.56% based upon current income.

By Brian K. Miller | Updated on July 25, 2003

CHATTANOOGA, TN-CBL & Assoc. Properties Inc. has agreed to acquire four regional malls from partnerships managed by Faison Enterprises for $340 million, including $170-million in debt with an average interest rate of 7.7%. The deal will close in multiple transactions beginning in the third quarter.

Located in Fayetteville, NC, and the Virginia cities of Lynchburg, Colonial Heights and Roanoke, the malls comprise 3.25 million sf of leasable space that is currently 90.9% occupied. CBL expects the properties to generate an initial yield of 8.56% based upon current income.

“This acquisition is a perfect fit for us; Faison developed these four properties and has done an excellent job in managing them and keeping the malls up to date,” says CBL Chairman/CEO Charles Lebovitz. “These properties share many similarities to our other 55 regional malls, such as dominant franchises in middle markets, future expansion and leasing opportunities, strong anchor lineups and mall sales averaging $319 per square foot. With CBL malls and shopping centers in close proximity to these properties, we will be able to leverage our familiarity with the markets as well as create greater efficiencies and growth opportunities.”

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