CBL Disposes of Majority Ownership in Debt-Laden Mall Property in Raleigh
- Feb 07, 2015
by Adriana Pop, Associate Editor
In a $181 million deal, CBL & Associates Properties and its 50-50 joint venture partner, The R.E. Jacobs Group, are selling the Triangle Town Center and the adjacent Triangle Town Place shopping center in north Raleigh to an institutional investor.
In its fourth quarter earnings report, Chattanooga, Tennessee-based CBL announced it has reached an agreement with its partner in the mall’s ownership, under which the new investor will own 85 percent of the assets, while CBL will retain the remaining 15 percent, along with the leasing and management duties for both properties.
The transaction, subject to the assumption of the $175.1 million loan secured by Triangle Town Center and Place and other customary closing conditions, is expected to close in the third quarter 2015.
Open since 2002, the 1.3 million-square-foot Raleigh mall is anchored by Saks Fifth Avenue, Belk, Macy’s, Sears and Dillard’s. According to the Triangle Business Journal, the property has been underperforming by CBL’s standards. At the end of 2013 for instance, the mall was 92 percent leased with average retail sales of $308 per square foot, while the company’s other properties were 95 percent occupied.
Last November, while facing debt issues for the Triangle Town Center, CBL reclassified the asset as a “lender property” on its balance sheet.
Photo credits: www.triangletowncenter.com