RALEIGH, NC—CBL & Associates Properties, Inc. revealed that the Chattanooga, TN-based retail owner has signed a contract to sell the majority interest in the Triangle Town Center and Triangle Town Place properties here for $181 million.
The deal was announced by the company on Tuesday as part of its release of its fourth quarter financial results. CBL disclosed that the firm and its 50/50 joint venture partner, The R.E. Jacobs Group, executed a contract to sell Triangle Town Center and Triangle Town Place for $181.0 million to a new partnership between CBL and an institutional investor. Following the close of the transaction, the investor will own 85% of the assets with CBL retaining 15% ownership and providing leasing and management services. The company did not reveal the identity of the institutional investor.
The transaction is expected to close in the third quarter of 2015, subject to the assumption of the $175.1-million loan secured by Triangle Town Center and Triangle Town Place, the company states.
According to the company's website, Triangle Town Center totals 1.26 million square feet and features more than 165 stores. The property, which opened in August 2002, sits on more than 110 acres and is anchored by: Barnes & Noble Booksellers, Belk, Dillard's Macy's Saks Fifth Ave. and Sears.
The company reported its same center net operating income rose 2.9% and 2.4% for the fourth quarter and year-ended Dec. 31, 2014, respectively over the prior-year periods.
Average gross rent per square foot increased 12.6% for stabilized mall leases signed in the fourth quarter 2014 and full-year 2014 over the prior rate.
“We are pleased to end 2014 with such strong performance, achieving the high end of our guidance range for same-center NOI growth and FFO as well as double-digit lease spreads,” says Stephen Lebovitz, president and CEO of CBL & Associates. “We are not resting on these significant accomplishments with goals for 2015 of sustaining our momentum, investing to grow our core portfolio and disposing of non-core and mature properties.”
He added, “We are making positive headway on our disposition program, with a number of transactions in various stages, including a newly executed contract on Triangle Town Center and Place. While we are cautious not to make preliminary announcements, the level of disposition activity we are involved in is encouraging and we look forward to communicating additional progress.”
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