CBL Completes Sale of Majority Interest in Triangle Town Center to DRA Advisors

by Katie Sloan

RALEIGH, N.C. — CBL & Associates Properties Inc. (NYSE: CBL) has closed on a new joint venture with DRA Advisors LLC that significantly reduces the retail real estate investment trust’s ownership stake in Triangle Town Center and Commons mall in Raleigh.

The new joint venture acquired the property from an existing 50/50 joint venture between CBL and The Richard E. Jacobs Group for a total consideration of $174 million, including the assumption of a $171.1 million loan secured by the property.

CBL now holds a 10 percent ownership position in the asset and is responsible for leasing and managing the property. DRA Advisors holds a 90 percent ownership position.

The center, which was 96 percent occupied at the end of 2015, is anchored by North Carolina’s only Saks Fifth Avenue location, and is located at the intersection of Triangle Town Boulevard and I-540 near Capital Boulevard and Old Wake Forest Road.

The $171.1 million loan on the property, which matured in December 2015, has been modified and restructured with an initial term of three years maturing in December 2018. The loan includes two one-year extension options available to the new joint venture for a final maturity date of December 2020. The interest was reduced from 5.73 percent to 4 percent interest-only payments.

“We are pleased to enter into this new joint venture with a high-quality institutional investor,” says Stephen Lebovitz, president and CEO of CBL. “Along with our new partners, we are excited about executing on the center’s strong growth opportunities and elevating its position in the market.”

Andrew Peltz, managing director of DRA, says he is excited about unlocking the potential of Triangle Town Center and is prepared “to invest fresh vision and capital to bring the asset to a new level.”

Chattanooga, Tenn.-based CBL & Associates Properties Inc. is one of the largest and most active owners and developers of malls and shopping centers in the United States. CBL owns, holds interest in or manages 147 properties nationwide, including 91 regional malls and open-air centers.

CBL’s stock price closed on Monday, Feb. 8, at $10.11 per share, down from $18.97 a year ago.

New York City-based DRA Advisors is a registered SEC investment advisor with $6.8 billion worth of assets under management.

Katie Sloan

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