The selling price includes the assumption of $40 million in debt, according to a release from Chattanooga, TN-based CBL & Associates. The property was sold by a partnership of Dillard's Inc., headquartered in Little Rock, and the MGHerring Group of Dallas. The sale did not include the 175,000-sf Dillard's, one of four anchors in the 80%-leased mall.

Developed in 1979, the 75-acre Sunrise Mall underwent a $40-million renovation just three years ago. Other anchors are Sears, Beall's and a 16-screen Cinemark theater. The mall, positioned at the intersection of FM 802 and US Highway 77/83, last year recorded sales of $299 per sf.

The 100%-occupied Sunrise Commons shopping center hosts retailers such as Marshalls, Old Navy and Ross Dress For Less. Owned stores are held by Kmart and Staples.

CBL's estimate is the retail properties will generate an initial un-leveraged return of 9% based upon the current income. The predicted return rises to 9.4% without property management fees and structural reserves, the release said.

"Sunrise Mall is a well-located, dominant regional mall with a strong tenant mix that attracts shoppers from both southern Texas and from across the border with Mexico," Charles B. Lebovitz, CBL's chairman and CEO, said in the release. The two properties have an annual foot traffic of about 17 million visitors. Lebovitz said the plan is "to build on this traffic and the strong response to the mall's extensive renovation with an aggressive leasing and specialty leasing program.

Instant Insights /

$80.7M Wins 966,000 SF of Rio Grande Retail

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