CBL Acquires 890,000-SF Virginia Mall

CHATTANOOGA, TN-CBL & Associates Properties Inc. has acquired the 890,000-sf Greenbrier Mall in Chesapeake, VA, from an affiliate of Gregory Greenfield & Associates Ltd. The mall was purchased for $102.5 million in cash plus a charge of $4.5 million for prepaying the existing debt that CBL did not assume. CBL is a locally headquartered shopping center development and management company. The company financed the acquisition with a $92.65 million two-year term loan (with extension options) that carries an interest rate of LIBOR plus 100 basis points.Greenbrier Mall is currently 85.4% occupied with average mall shop sales of $330 per sf in 2003. The investment is expected to generate an initial yield of 8% based upon current income and the purchase price of $102.5 million. The two-story mall is located on approximately 107 acres of land in the southeast corner of Greenbrier Parkway and I-64. Anchored by Dillard’s, Hecht’s and Sears, Greenbrier Mall underwent a fullinterior renovation in fall 2003. Dillard’s is consolidating two stores into one 160,000-square-foot store with completion expected this month. The addition of a fourth anchor is targeted for spring 2005 when JCPenney joins the mall by taking Dillard’s former space of 105,260 sf. National retailers at Greenbrier Mall include American Eagle, B Moss Clothing Company, Limited Express, Limited Too, Pacific Sun and Victoria Secret.CBL, one of the top owners of shopping centers in North America, owns and manages five additional shopping centers in Virginia including three regional malls: Southpark Mall in Colonial Heights (Richmond), River Ridge Mall in Lynchburg and Valley View Mall in Roanoke. Its other two Virginia properties are community centers.