CHATTANOOGA, TENN. — Chattanooga-based CBL Properties (NYSE: CBL) has acquired four enclosed regional malls from Washington Prime Group for $178.9 million. The properties include Ashland Town Center in Ashland, Ky.; Mesa Mall in Grand Junction, Colo.; Paddock Mall in Ocala, Fla.; and Southgate Mall in Missoula, Mont.
CBL says it is focused on owning and managing successful enclosed malls in dynamic and growing middle markets. The deal suggests mall recovery extends beyond luxury properties, driven by limited retail construction since 2008, according to The Wall Street Journal.
Ashland Town Center is a single-level mall that opened in 1989. Totaling more than 420,000 square feet, the property features more than 70 retailers and restaurants, including anchors JCPenney, Belk, T.J. 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 largest indoor shopping center in western Colorado, Mesa Mall spans roughly 733,000 square feet and is home to more than 120 stores and services. Anchor tenants include Cabela’s, Dillard’s, JCPenney, Target, HomeGoods and Dick’s Sporting Goods. Originally developed in 1980, the property has undergone several redevelopments to modernize its offerings.
The single-level Paddock Mall is the only enclosed mall in Florida’s Marion County. Opened in 1980, the center totals approximately 550,000 square feet and features more than 90 stores and restaurants. Anchor tenants include JCPenney, Macy’s and Belk. A fourth anchor space, formerly occupied by Sears, is currently under redevelopment and is branded as the Paddock Market.
The largest enclosed shopping center in western Montana, Southgate Mall is situated near the University of Montana campus. Opened in 1978 and spanning roughly 546,000 square feet, the mall features more than 85 stores and restaurants. Anchor tenants include AMC Theatres, Scheels All Sports and Dillard’s.
“Each property fits perfectly within our existing portfolio,” says Stephen Lebovitz, CEO of CBL Properties. “They enhance CBL’s operating metrics, augmenting sales and occupancy and offer both near- and long-term growth opportunities.”
Concurrently with the transaction close, CBL completed a modification and extension of its existing $333 million nonrecourse loan with Beal Bank USA, which was scheduled to initially mature in June 2027. The loan was modified to include the four acquired properties, increasing the principal balance by $110 million.
The mall owner is currently executing a portfolio optimization strategy to redeploy proceeds from non-core asset sales into stable and growing assets that generate immediate accretion to its 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 sold The Promenade, a power center in D’lberville, Miss., for $83.1 million.
CBL filed for Chapter 11 bankruptcy protection in November 2020. When it emerged 12 months later, the company doubled down on its bread-and-butter of mid-tier, enclosed shopping centers, reports The Wall Street Journal.
CBL’s owned and managed portfolio comprises 89 properties totaling 55.4 million square feet across 22 states, including 55 enclosed malls, outlet centers and lifestyle retail centers, as well as more than 30 open-air centers and other assets. The company’s stock price opened at $27.49 per share Wednesday, July 30, up from $25.90 one year ago.
— Kristin Harlow