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Highlights

  • CBL acquired four enclosed malls from Washington Prime Group in a USD 178.9 million transaction.
  • A USD 333 million non-recourse loan was modified to USD 443 million, extending maturity to 2030.
  • The deal increases run-rate cash flow per share and lowers floating rate interest exposure.

CBL Properties (NYSE: CBL) has completed the acquisition of four enclosed regional malls for USD 178.9 million from Washington Prime Group. The newly acquired properties, Ashland Town Center in Kentucky, Mesa Mall in Colorado, Paddock Mall in Florida, and Southgate Mall in Montana are established retail hubs in their respective regions and fit into CBL’s existing strategy of focusing on middle-market communities.

Headquartered in Chattanooga, Tennessee, CBL owns and manages a portfolio of 89 retail properties across 22 states, including enclosed malls, open-air centers, and outlets totaling 55.4 million square feet. The company has been selling non-core assets to fund acquisitions of income-generating properties. Since 2024, over USD 241 million in assets such as open-air centers and outparcels have been sold, including the recent USD 83.1 million disposition of The Promenade in Mississippi.

To support the mall acquisition, CBL modified its existing USD 333 million non-recourse loan with Beal Bank USA. The revised loan incorporates the newly acquired properties, increasing the total principal to approximately USD 443 million. The loan now carries a seven-year term, with an initial maturity in October 2030 and a possible extension to 2032. For the first five years, USD 368 million will carry a fixed rate of 7.70 percent, while the remaining USD 75 million will float at SOFR plus 410 basis points.

According to CFO Ben Jaenicke, the new structure reduces exposure to variable rates and extends debt maturity, enhancing financial flexibility. The company expects the transaction to be immediately accretive to cash flow per share and moderately deleveraging to its balance sheet.

The four acquired malls each hold dominant retail positions in their markets. Mesa Mall spans over 733,000 square feet and is the largest indoor center in western Colorado. Southgate Mall in Missoula serves as the largest enclosed retail venue in western Montana. Paddock Mall is the only enclosed mall in Florida’s Marion County, while Ashland Town Center serves a wide regional base in northeastern Kentucky.