CBL & Associates Properties, Inc. (
- a real estate investment trust (REIT) - recently acquired the
remaining 51% interest of an enclosed regional shopping mall -
Kirkwood Mall - located in Bismarck from Radiant Partners. The
acquisition of this 2nd-biggest mall in N.D. district boosted
CBL's portfolio of high-quality market-dominant regional
Notably, in December 2012, CBL bought the 49% non-controlling
interest in Kirkwood Mall and inked a deal to gain the remaining
51% interest in January this year. The company assumed a
non-recourse loan worth $40.4 million that was securitized
through WFRBS Commercial Mortgage Trust. The debt has a fixed
interest rate of 5.75% and matures in Apr 2018.
Developed in 1971, Kirkwood Mall spans 850,000 square feet and
is a premier shopping center. The property is suitably located
near Bismarck Expressway and 7th Street with direct access to
I-94. The mall is also enjoying significantly increasing revenues
mainly due to its proximity to the Bakken Formation oil reserves.
In 2012, the sales per square feet at the mall increased over 15%
to over $409 per square feet.
As of Dec 31, 2012, the mall was 88% occupied and sheltered
some industry-leading tenants such as
J. C. Penney Company, Inc. (
Target Corp. (
Chico's FAS Inc. (
, Herberger's and Keating Furniture. Additionally, the mall
offers both near and long-term growth opportunities through low
occupancy cost as well as lease-up of remaining space.
We remain upbeat regarding the abovementioned upscale property
acquisition as this is expected to benefit CBL by capitalizing on
the continuous growth opportunities in the Bismarck market.
Moreover, property is a quality addition to the company's
portfolio of premium shopping centers. CBL currently owns or
holds interests in 159 properties, spanning a total of 92.9
million square feet, situated across 27 U.S. states.
CBL is expected to release its first-quarter 2013 results on
Apr 29, 2013. The Zacks Consensus Estimate for the company's
first-quarter FFO (funds from operations) is currently pegged at
51 cents per share.
CBL currently carries a Zacks Rank #2 (Buy).
Note: FFO, a widely accepted and reported measure of the
performance of REITs, is derived by adding depreciation,
amortization and other non-cash expenses to net income.
CBL&ASSOC PPTYS (CBL): Free Stock Analysis
CHICOS FAS INC (CHS): Free Stock Analysis
PENNEY (JC) INC (JCP): Free Stock Analysis
TARGET CORP (TGT): Free Stock Analysis Report
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