CHATTANOOGA, TN—Shopping center REIT CBL & Associates Properties Inc. said Monday that it had closed on a sale-leaseback transaction for five Sears department stores and two Sears Auto Centers located at CBL malls. The deal will provide CBL with control of these locations for future redevelopment.
CBL paid a total of $72.5 million for the five locations. They include the Sears parcels at Cross Creek Mall in Fayetteville, NC; Brookfield Square in Brookfield, WI; Hamilton Place Mall in Chattanooga, TN; Eastgate Mall in Cincinnati; and Jefferson Mall in Louisville. The two acquired Sears Auto Centers are located at Northgate Mall in Chattanooga and Volusia Mall in Daytona, FL.
Sears will continue to operate the department stores under new 10-year leases. Under the terms of the leases, CBL will receive aggregate initial base rent of approximately $5.075 million, with Sears also responsible for paying common area maintenance charges, taxes, insurance and utilities.
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