The size of the deal also may qualify for the record books. "I would certainly think it'd be in the top 10," John R. Martin, Jr., vice president of corporate relations and marketing, tells GlobeSt.com. "The top five, I don't know."

The 23-center package includes six in Wisconsin, three each in Kentucky, North Carolina, Ohio and South Carolina, two in Michigan, as well as one each in Illinois, Tennessee and Texas. The sale marks the CBL's entry into Ohio, Martin said.

The Richard E. Jacobs Group received $124.8 million in cash and special common units of CBL's operating partnership worth $405 million. CBL also takes on $771.3 million in non-recourse mortgage debt. The deal expands its portfolio to 158 properties in 26 states totaling 55.9 million sf.

The malls in the final package was on a list of 38 properties Jacobs offered the REIT, Martin said. "The 21 we acquired were the one we were interested in, and they also fit in geographical locations where we were," he added.

Renovations are likely at the recently-acquired properties, Martin indicated. "Typically when we make an acquisition our plan is to renovate or expand the centers, and leasing up the vacancies."

The package included 714,000-sf CherryVale Mall in Rockford, IL and three in Madison WI: the 1,021,000-sf West Towne Mall, 895,000-sf East Towne Mall and 447,000-sf West Towne Crossing. CBL acquired 65% interest in the latter two malls. In addition, the sale includes the 1,041,000-sf Brookfield Square Mall in suburban Milwaukee, the 918,000-sf Regency Mall in Racine and 429,000-sf Wausau Center in Wausau, WI.

The Kentucky properties are the 1,096,000-sf Fayette Mall in Lexington, the 936,000-sf Jefferson Mall in Louisville and a 50% interest in the 878,00-sf Kentucky Oaks in Paducah.

In North Carolina, CBL now owns 100% of the 1,556,000-sf Hanes Mall in Winston-Salem and 376,000-sf Randolph Mall in Asheboro, as well as 80% of 953,000-sf Cary Towne Center.

The Ohio acquisitions were 905,000-sf Eastgate Mall in Cincinnati, 521,000-sf Towne Mall in Franklin and the 268,000-sf Eastgate Crossing in Cincinnati.

The South Carolina properties are the 1,113,000-sf Columbia Mall in Columbia, 1,068,000-sf Citadel Mall in Charleston and 833,000-sf Northwoods Mall in North Charleston.

The Michigan acquisitions were the 786,000-sf Fashion Square Mall in Saginaw and 514,000-sf Midland Mall in Midland.

Also entering the CBL portfolio were the 1,411,000-sf Parkdale Mall in Beaumont, TX and 555,000-sf Old Hickory Mall in Jackson, TN.

"Our entire organization has worked tirelessly over the last several monthsto ensure that the integration of these properties will be as seamless aspossible from day one," Chairman and Chief Executive Officer Charles B. Lebovitz. "These integration efforts, which include addingpersonnel in several areas of the company, have positioned us to take advantage of the many opportunities this acquisition creates."

Instant Insights /

$1.3-Bil Purchase Makes CBL Properties 3rd-Largest Mall REIT

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