January 14th, 2013CBL to Acquire Kirkwood Mall
CBL & Associates Properties, Inc. ( CBL ) - a real estate investment trust (REIT) – announced its intention to buy full ownership of an enclosed regional shopping mall – Kirkwood Mall – located in Bismarck from Radiant Partners. The acquisition of this second-biggest mall in North Dakota district will boost CBL’s portfolio of high-quality market-dominant regional malls.
Last month, CBL bought the 49% non-controlling interest in Kirkwood Mall and inked a deal to gain the remaining 51% interest. The company will assume 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 April 2018. The company expects the deal to close within 90 days, subject to lenders approval of loan assumption.
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 revenue mainly due to its proximity to the Bakken Formation oil reserves. In 2012, the sales per square feet at the mal increased over 15% to over $400 per square feet.Continue Reading »