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CBL Sells Majority Stake in Virginia Mall

LYNCHBURG, VA—A redevelopment for River Ridge is being planned with the new co-owner Liberty University, according to the REIT.

By Erika Morphy | erikamorphy | | Updated on March 14, 2016
River Ridge mall River Ridge mall
LYNCHBURG, VA—The Chattanooga, Tenn.-based REIT CBL & Associates has sold a 75% stake in a mall here to Liberty University.  The partial sale of the shopping center, River Ridge, is netting CBL cash proceeds of $33.5 million. The REIT is keeping a 25% ownership position in the property and will continue leasing and managing it. Liberty University is acquiring the property to diversify its financial assets, according to its president Jerry Falwell. He said that Liberty’s commercial real estate holdings “have performed well in recent years.” The mall is seeking to fill a now empty Sears and the CBL-Liberty new ownership is planning to redevelop it to house other retail, restaurants and entertainment tenants, according to CBL CEO Stephen Lebovitz. “We look forward to making an announcement when plans have been finalized,” Lebovitz said. The stake sale is part of CBL’s larger push to dispose of non-core and community assets. Dispositions have been a major priority for the REIT as it seeks to continue to deleverage its balance sheet and build up its liquidity.  Indeed, even though the CBL & Associates got permission to launch a share buyback strategy last year, it is holding off until it feels more confident about its finances, executives said during a recent earnings call. Last year, CBL closed more than $220 million in sales for a total of $180 million in net equity.  CBL is also making a point of leasing and managing the properties for the new owners, giving it another source of revenue.

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