CBL Properties Expands Portfolio with Mall Acquisition, Renegotiates Loan with Beal Bank USA.

CBL Properties has acquired four enclosed regional malls from Washington Prime Group for $178.9 million. The company has also renegotiated a $443 million non-recourse loan with Beal Bank USA, extending the initial maturity date to October 2030. CBL's revenue growth has been modest at 2% over the past year, while its operating margin is 23.69% and net margin is 12.82%. However, the high debt-to-equity ratio of 7.29 and Altman Z-Score of 0.58 suggest potential financial instability.

Chattanooga, Tenn. — CBL Properties has acquired four dominant enclosed regional malls for $178.9 million from Washington Prime Group. The malls include Ashland Town Center in Ashland, KY, Mesa Mall in Grand Junction, CO, Paddock Mall in Ocala, FL, and Southgate Mall in Missoula, MT [1].

This acquisition reinforces CBL’s position as the preeminent owner and manager of successful enclosed malls in dynamic and growing middle markets. “We are thrilled to add these four dominant enclosed malls to the CBL portfolio,” said Stephen D. Lebovitz, CEO of CBL Properties. “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” [1].

The transaction represents significant progress in the execution of CBL’s portfolio optimization strategy, which involves redeploying proceeds from non-core asset sales into stable and growing assets that generate immediate accretion to CBL’s portfolio cash yield. In 2024 and year-to-date in 2025, CBL has completed sales of more than $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, MS, at an attractive single-digit cap rate. Additional open-air center dispositions are planned for the near-term, which will generate attractively priced capital from an undervalued segment of CBL’s portfolio [1].

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, which was scheduled to initially mature in June 2027, with one, two-year extension option. 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. For the initial five-year term, the new interest-only loan will bear a fixed interest rate of 7.70% on a principal balance of approximately $368.0 million and a floating interest rate of SOFR plus 410 basis points on the remaining balance of approximately $75.0 million. The interest rate on the full principal balance will convert to the floating rate after the initial term [1].

“We are pleased to further our relationship with Beal Bank through this transaction,” said Ben Jaenicke, EVP – CFO of CBL Properties. “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” [1].

Ashland Town Center, one of the acquired malls, is a single-level enclosed regional shopping mall located in Ashland, Kentucky, along U.S. Highway 23 near downtown. Opened in 1989, the mall spans over 420,000 square feet and features more than 70 retailers and restaurants, including major anchors such as JCPenney, Belk (Women & Kids and Men & Home), TJ Maxx, Ulta Beauty, and Five Below. The center has undergone several renovations over the years, including a major redevelopment in the late 2000s that added a new JCPenney prototype store and updated amenities. The mall also includes popular dining options like Olive Garden and Slim Chickens and serves as a dominant retail destination in the region, attracting millions of visitors annually [1].

CBL Properties has expanded its retail portfolio by acquiring these four enclosed regional malls, which aligns with its strategy to bolster its retail footprint and enhance its revenue streams and market positioning. However, the high debt-to-equity ratio of 7.29 and Altman Z-Score of 0.58 suggest potential financial instability, necessitating careful management of its financial obligations [3].

References:
[1] https://www.lanereport.com/182777/2025/07/cbl-properties-buys-ashland-town-center-mall-in-179m-package-deal/
[2] https://seekingalpha.com/news/4474468-cbl-buys-four-regional-malls-for-179m-modifies-loan
[3] https://www.gurufocus.com/news/3014561/cbl-properties-expands-portfolio-with-strategic-mall-acquisition