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LIVONIA, MI-CBL & Associates Properties has officially closed on the acquisition of a 70% joint venture interest in Laurel Park Place in Livonia from Schostak Brothers & Co. The total transaction cost was $82.2 million, including estimated closing costs.
The 505,000-sf shopping center is on 31 acres at the intersection of Six Mile Road and Interstate 275. The mall was originally built in 1989 and expanded in 1994. It is currently 85.5% occupied andachieved sales per sf of $409 per square foot in 2004.
The joint venture holds approximately $50.7 million of non-recourse debt at an interest rate of 8.5%, maturing in 2012. The company financed the balance of the purchase with $2.6 million of cash and through the issuance of Special Common Units of CBL's OperatingPartnership at a value of $28.9 million. The company issued 285,850 SCUs at $100.96, which represented a 25% premium to the average closing price of CBL's common stock for the past five trading days.
The SCUs will be entitled to receive an initial annual dividend of 6.0% and will be exchangeable on a one-for-one basis for shares of CBL's common stock. Laurel Park Place is anchored by Parisian, Von Maur and more than 75 specialty stores including Ann Taylor, Chico's, Talbots, California Pizza Kitchen, and Williams-Sonoma. CBL & Associates Properties, Inc. is the fourth largest mall REIT in North America.
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