CBL & Associates acquires four enclosed regional malls for $178.9M

CBL Properties announced that it has acquired four enclosed regional malls for $178.9M from Washington Prime Group. The malls include Ashland Town Center in Ashland, Kentucky, Mesa Mall in Grand Junction, Colorado, Paddock Mall in Ocala, Florida, and Southgate Mall in Missoula, Montana. Concurrently with the transaction close, CBL completed a modification and extension of its existing $333M non-recourse outparcel and open-air center loan with Beal Bank USA, which was scheduled to initially mature in June 2027, with one, two-year extension option. The loan was modified to include the acquisition properties, increasing the principal balance by $110M to approximately $443M and providing for a seven-year term, comprised of an initial maturity in October 2030, with one, two-year extension option for a final maturity in October 2032. For the initial five-year term, the new interest-only loan will bear a fixed interest rate of 7.70% on a principal balance of approximately $368M and a floating interest rate of SOFR plus 410 basis points on the remaining balance of approximately $75M. The interest rate on the full principal balance will convert to the floating rate after the initial term.