X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

MONROEVILLE, PA-At a cost of $231.2 million, CBL & Associates Properties of Chattanooga, TN, is the new owner of 1.4 million sf of retail in this eastern Pittsburgh suburb. The seller was South Florida-based Turnberry Associates.The leasehold purchase includes the 1,128,747-sf Monroeville Mall, which is currently 93% occupied with 12-month average mall shop sales of $365 per sf; the 229,588-sf Annex, which is 100% occupied, and; the 86,204-sf Village, which is currently under construction and 50% leased. JCPenney, Kaufmann’s and Lazarus anchor the mall. The Annex is anchored by Best Buy, Burlington Coat Factory, Dick’s Sporting Goods and OfficeMax. The Village will feature a Barnes & Noble bookstore.The purchase price includes the assumption of a $134-million fixed-rate, non-recourse loan that matures in 2013 and bears interest at a rate of 5.7%; about $36.2 million in cash, including closing costs; and the issuance of 780,470 special common units of CBL’s Operating Partnership with a par value of $60.95 million, or $78.10 per unit. The SCUs will be entitled to receive an initial annual dividend of 6.5% and will be exchangeable on a one-for-one basis for shares of CBL’s common stock. CBL also obtained an option to purchase the fee interest in the property. The option can be exercised anytime after three years for $10 million and can be paid either in cash or SCUs at the election of CBL.The investment in the mall and the associated center is expected to generate an initial yield of 7.37% based upon current income, according to CBL. An additional $20.7 million will be invested for the open-air expansion, which is expected to yield 8.18% when it opens in mid-2005. The combined return for the entire project is expected to be 7.45%, according to CBL.Built in 1969, Monroeville Mall has been expanded and renovated numerous times, the most recent of which was completed in 2003 with a $10 million investment to upgrade the mall decor and install new air chillers. The two-story complex is located on about 169 acres on the south side of William Penn Highway, one-half mile south of I-376 and two miles west of the Pennsylvania Turnpike (I-76).CBL, which touts itself as “one of the top five owners of shopping centers in North America,” also owns the Westmoreland Mall located approximately 45 minutes east of Monroeville.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.