(Ian Ritter is national online editor for GlobeSt.com/RETAIL.)
RALEIGH, NC-The Richard E. Jacobs Group and CBL & Associates have formed a 50/50 joint venture to own the Triangle Town Center mall here, as well as its associated open-air centers Triangle Town Commons and Triangle Town Place. CBL will manage, lease and redevelop the centers for the JV, which company executives value at $283.5 million.
Jacobs opened the 1.3-million-sf Triangle Town Center mall in 2002 and the neighboring centers thereafter. Belk, Dillard's, Hecht's, Sears and Sak's Fifth Avenue anchor the mall; Bed Bath & Beyond, Dick's Sporting Goods, DSW Shoes are among the stores in Town Place; and Men's Wearhouse, Pier One Kids and Ted's Montana Grill are anchors in Town Commons.
Initially, CBL will not contribute any funds to the venture. The property will enter into a 10-year, fixed-rate, non-recourse loan between $195 million and $203 million. Proceeds will be used to pay an existing construction loan totaling about $121 million with the balance paid to the Jacobs Group.
This is not the first joint venture between the two mall owners. The companies are both building Gulf Coast Town Center, a 1.7-million-sf regional, open-air center in Lee County, FL.
CBL holds interests in 124 properties, including 73 regional malls and open-air centers in 24 states. The Chattanooga, TN-based REIT also has six properties under construction totaling 1.1 million sf.
Triangle Town Center is the Cleveland-based Jacobs Group's only operational center, though the firm has built, and subsequently sold, about 45 million sf of retail assets in the US. Besides Gulf Coast, the company is also building the 1.4-million-sf open-air Cypress Creek Town Center in Pasco County, FL.
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