CBL Properties Acquires Four Regional Malls for $178.9M

CBL Properties acquired four enclosed regional malls in fast-growing markets from Washington Prime Group for $178.9M. The malls are located in Ashland, Kentucky; Grand Junction, Colorado; Ocala, Florida; and Missoula, Montana. The acquisitions are part of CBL's strategy to redeploy proceeds from the sale of its 22 Sears and Kmart properties.

CBL Properties (NYSE:CBL) has expanded its portfolio by acquiring four enclosed regional malls from Washington Prime Group for $178.9 million. The malls are strategically located in Ashland, Kentucky; Grand Junction, Colorado; Ocala, Florida; and Missoula, Montana. This acquisition is part of CBL's ongoing strategy to redeploy proceeds from the sale of its 22 Sears and Kmart properties.

The newly acquired malls are:

1. Ashland Town Center in Ashland, Kentucky, a single-level enclosed regional shopping mall with over 420,000 square feet and more than 70 retailers and restaurants.
2. Mesa Mall in Grand Junction, Colorado, the largest indoor shopping center in western Colorado, featuring over 120 stores and services.
3. Paddock Mall in Ocala, Florida, the only enclosed mall in Marion County, with approximately 550,000 square feet and over 90 stores and restaurants.
4. Southgate Mall in Missoula, Montana, the largest enclosed shopping center in western Montana, with over 85 stores and restaurants.

The acquisition aligns with CBL's strategy to invest in stable and growing assets that generate immediate accretion to its portfolio cash yield. CEO Stephen D. Lebovitz stated, "Each property fits perfectly within our existing portfolio. They enhance CBL’s operating metrics, augmenting sales and occupancy, and offer both near- and long-term growth opportunities."

Concurrently, 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 extended by seven years, with an initial five-year term featuring a fixed interest rate of 7.70% and a floating rate of SOFR + 410 basis points for the remaining balance.

This transaction exemplifies CBL's ability to strategically leverage the attractive valuations of its high-quality open-air and outparcel portfolio to fund investments in market-dominant enclosed malls. The acquisition is immediately accretive to CBL's cash flow per share and FFO, and moderately deleveraging to its balance sheet.

References:
[1] https://seekingalpha.com/news/4474468-cbl-buys-four-regional-malls-for-179m-modifies-loan
[2] https://www.chattanoogan.com/2025/7/29/506480/CBL-Properties-Acquires-4-Regional.aspx