CBL Announces Acquisition of Dakota Square Mall in Minot, ND
17 May 2012 - 6:10AM
Business Wire
CBL & Associates Properties, Inc. (NYSE: CBL), today
announced the acquisition of Dakota Square Mall in Minot, ND. CBL
acquired the property from the Lightstone Group.
“Dakota Square Mall is a textbook example of our dominant mall
strategy. The center holds an unrivaled franchise position within a
growing and economically diverse regional market. We are pleased to
enhance our portfolio with this acquisition,” stated Stephen
Lebovitz, president and CEO of CBL & Associates Properties,
Inc. “Dakota Square Mall offers significant immediate and long-term
upside potential with below-average occupancy costs as well as
opportunities for conversions of temporary tenants to permanent
leases. We anticipate adding value through these opportunities as
well as capitalizing on the substantial growth the market is
experiencing.”
Dakota Square Mall was acquired for a total consideration of
$91.475 million, including the assumption of a $59.0 million loan.
The loan matures in November 2016 and bears a fixed interest rate
of 6.23%.
Dakota Square Mall is a single-level, enclosed super-regional
mall located in Minot, ND. The 622,000-square-foot mall is anchored
by a nine-screen Carmike Cinema, Herberger’s, JCPenney, Sears,
Target, Barnes & Noble and Scheels All Sports. The mall
generated sales of $470 per square foot for the twelve months ended
March 31, 2012. As of March 31, 2012, the center was 94% occupied,
offering a great selection of stores and restaurants including
American Eagle Outfitters, Bath & Body Works, The Buckle,
Victoria’s Secret, Footlocker, and Grizzly’s Grill & Saloon.
The 176-room Sleep Inn Suites & Hotel and Splashdown Dakota
Super Slides indoor water park is located adjacent to the mall,
connected with an interior mall entrance.
Dakota Square Mall serves a wide trade area reaching across the
Canadian border into the Canadian provinces of Saskatchewan and
Manitoba. The mall was originally built in 1980 and expanded
several times, including the addition of Barnes & Noble in 2008
and a new nine-Screen Carmike Cinema. Sheels All Sports recently
completed a 9,000-square-foot expansion to its store.
Minot has experienced significant growth in recent years. A
major contributor to the Minot economy, the Minot Air Force Base
has benefited from the Defense Base Closure and Realignment
Commission (BRAC) and is one of the only ICBM bases in the United
States. In addition, Minot is located near the Bakken Shale
Formation, with oil reserves estimated at 24 billion barrels. With
new rock-fracturing technology made available in 2008, Bakken
production has boomed. As a result, the area has experienced a
tremendous influx of population. The unemployment rate in Minot is
one of the Nation’s lowest at 3.6%.
About CBL & Associates Properties,
Inc.
CBL is one of the largest and most active owners and developers
of malls and shopping centers in the United States. CBL owns, holds
interests in or manages 160 properties, including 90 regional
malls/open-air centers. The properties are located in 27 states and
total 87.3 million square feet including 3.6 million square feet of
non-owned shopping centers managed for third parties. Headquartered
in Chattanooga, TN, CBL has regional offices in Boston (Waltham),
MA, Dallas (Irving), TX, and St. Louis, MO. Additional information
can be found at cblproperties.com.
Information included herein contains "forward-looking
statements" within the meaning of the federal securities laws. Such
statements are inherently subject to risks and uncertainties, many
of which cannot be predicted with accuracy and some of which might
not even be anticipated. Future events and actual events, financial
and otherwise, may differ materially from the events and results
discussed in the forward-looking statements. The reader is directed
to the Company's various filings with the Securities and Exchange
Commission, including without limitation the Company's Annual
Report on Form 10-K and the "Management's Discussion and Analysis
of Financial Condition and Results of Operations" incorporated by
reference therein, for a discussion of such risks and
uncertainties.
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