CBL Properties Acquires Four Dominant Malls for $178.9M, Enhancing Portfolio and Executing Strategy

CBL Properties has acquired four enclosed regional malls from Washington Prime Group for $178.9 million. The acquisition enhances CBL's operating metrics, augments sales and occupancy, and offers growth opportunities. The transaction represents progress in CBL's portfolio optimization strategy, which involves redeploying proceeds from non-core asset sales into stable and growing assets. The acquisition is immediately accretive to CBL's cash flow per share and FFO, and moderately deleveraging to its balance sheet.

CBL Properties (NYSE:CBL) has announced the acquisition of four dominant enclosed regional malls for $178.9 million from Washington Prime Group. The acquired properties include Ashland Town Center in Ashland, Kentucky, Mesa Mall in Grand Junction, Colorado, Paddock Mall in Ocala, Florida, and Southgate Mall in Missoula, Montana. This acquisition reinforces CBL's position as a leading owner and manager of successful enclosed malls in dynamic and growing middle markets.

Stephen D. Lebovitz, CEO of CBL Properties, stated, "We are thrilled to add these four dominant enclosed malls to the CBL portfolio. Each property fits perfectly within our existing portfolio, enhancing our operating metrics, augmenting sales and occupancy, and offering both near- and long-term growth opportunities."

The transaction represents significant progress in CBL's portfolio optimization strategy, which involves redeploying proceeds from non-core asset sales into stable and growing assets. In 2024 and year-to-date in 2025, CBL has completed sales of over $241 million in non-core malls, open-air centers, and outparcels. Most recently, CBL closed the $83.1 million sale of The Promenade, a premier power center in D’Iberville, Mississippi, at an attractive single-digit cap rate.

The acquisition is immediately accretive to CBL's cash flow per share and FFO, and moderately deleveraging to its balance sheet. Concurrently with the transaction close, CBL completed a modification and extension of its existing $333.0 million non-recourse outparcel and open-air center loan with Beal Bank USA. The loan was modified to include the acquisition properties, increasing the principal balance by $110.0 million to approximately $443.0 million and providing for a seven-year term, comprised of an initial maturity in October 2030, with one, two-year extension option for a final maturity in October 2032.

Ben Jaenicke, EVP - CFO of CBL Properties, expressed satisfaction with the transaction, stating, "We are pleased to further our relationship with Beal Bank through this transaction. This financing strengthens our balance sheet by extending our maturities, reducing interest rate risk, and locking in the attractive returns and cash flow generation from the four-mall acquisition."

The acquired malls are strategically situated and offer strong market positioning with both near and long-term growth potential. Ashland Town Center, Mesa Mall, Paddock Mall, and Southgate Mall each serve as dominant retail destinations in their respective regions, attracting millions of visitors annually.

References:
[1] https://www.stocktitan.net/news/CBL/cbl-properties-acquires-four-dominant-enclosed-regional-malls-in-5yldbymr4w8g.html
[2] https://www.businesswire.com/news/home/20250729935161/en/CBL-Properties-Acquires-Four-Dominant-Enclosed-Regional-Malls-in-Dynamic-and-Growing-Markets-for-%24178.9M