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MINOT, ND-Proof that secondary and further markets are being mined as core gets harder to compete on, Chattanooga, TN-based CBL & Associates Inc. has purchased the Dakota Square Mall here. The mall was acquired for a total consideration of $91.5 million, including the assumption of a $59 million loan, which matures in November 2016 and bears a fixed interest rate of 6.23%.
The 623,000-square-foot property, sold by the Lightstone Group, includes an attached hotel with an indoor water park. The mall is anchored by JCPenney, Target, Sears, Barnes & Noble and Carmike Cinema, and includes outparcels such as Best Buy and a grocery store. The 176-room Sleep Inn & Suites includes the Splashdown Dakota Super Slides. The 32-year-old property is 94% occupied with tenant sales at $470 per square foot, according to a statement from Savills LLC, which represented the New York City-based seller.
“This was an ideal transaction for both buyer and seller,” said John Williams, managing director at Savills said in a statement. “CBL gained a regionally exclusive, high-performing mall with additional upside potential, while the Lightstone Group was able to take advantage of the strong market for high-quality assets and earn a sizeable profit on a property it had owned for quite some time.”
A major contributor to the Minot economy, the Minot Air Force Base has benefited from the Defense Base Closure and Realignment Commission and is one of the only ICBM bases in the United States. Situated just 50 miles from the Canadian border, near Winnepeg, the mall attracts thousands of Canadian shoppers weekly making up 15% of the center’s 10 million visits, according to a CBL statement. Border crossings at nearby ports of entry are 30% higher than two years ago with more than 50% of weekend hotel stays at the Sleep Inn coming from Canadian guests.
There has been renewed interest in North Dakota due to rising oil prices, as the state includes the Bakken Shale Formation, the largest oil discovery in the United States in the past 40 years. Empty towns have seen much expanded population as jobs are added to work the oil boom here.
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