CBL & Associates Properties Inc. CBL recently sold Waynesville Commons, its North Carolina-based community center, to an affiliate of Yale Realty Services Corp for $14.5 million. The divestiture is in sync with the company’s broad-based community center and asset disposition plan aimed at reducing its debt burden.
The Waynesville Commons community center is a 128,000-square foot property, which was developed by CBL in 2012 to address the growing demand for retail in the Waynesville region. Notably, The Michaels Companies, Inc. MIK, and Belk, Inc. were key tenants of this property.
However, anticipating “strong demand for high-quality community and power centers”, the company decided to put the property on sale, thereby furthering its efforts to de-leverage its balance sheet.
Toward this same goal, in Nov 2015, CBL inked a deal to sell its Wilmington-based Mayfaire Community Center property for a cash price of $56.3 million. The transaction is expected to close by the end of 2015 (read more: CBL Eyes Sale of Non-Core Properties to Improve Leverage).
We remain encouraged by CBL’s efforts to improve its debt position and focus on best-performing properties. Moreover, lower debt will help the company increase its financial flexibility.
Headquartered in Chattanooga, CBL presently manages, owns or holds interests in 147 properties, including 91 regional malls or open-air centers. These properties, spanning 84.6 million square feet, are located in 30 states.
CBL currently holds a Zacks Rank #2 (Buy). Investors interested in the retail real estate investment trust space can also consider Agree Realty Corp. ADC and EPR Properties EPR. Both stocks carry the same Zacks Rank as CBL.
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