The deal also includes the 714,000-sf Cherryvale Mall in Rockford. CBL acquired 84% of the mall that is anchored by Bergner's Marshall Field and Sears.

Also included in the 21-mall deal that made CBL the nation's third-largest mall REIT are the 1,041,000-sf Brookfield Square Mall just west of Milwaukee, the 1,021,000-sf West Towne Mall in Madison, the 918,000-sf Regency Mall in Racine, the 895,000-sf East Towne Mall in Madison, 447,000-sf West Towne Crossing in Madison and the 429,000-sf Wausau Center. CBL bought 65% of the Madison malls, but may acquire outside partner interests.

JC Penney and Sears are anchor tenants in all of the malls except West Town Crossing. Boston Store is in four locations, the exceptions being West Towne Crossing and Wausau Center. Likewise, Younkers is in four locations, the exceptions being Brookfield Square and West Towne Crossing.

The malls in the final package was on a list of 38 properties Jacobs offered the REIT, said John R. Martin, Jr., vice president of corporate relations and marketing. "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 Richard E. Jacobs Group received $124.8 million in cash and special common units of CBL's operating partnership worth $405 million in the deal transferring 19.2 million sf of retail space. 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.

Instant Insights /

Malls in Rockford, Southeast Wisconsin Change Hands in $1.3-Bil Deal

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