Contributed photo / CBL & Associates Properties Inc. corporate headquarters are in Chattanooga.Chattanooga-based shopping center owner CBL & Associates Properties Inc. plans to sell Walnut Square mall in Dalton, Ga., as part of its ongoing effort to dispose of many of its lesser-performing properties.
The 495,000-square-foot mall, which opened in 1980, is one of three centers CBL has agreed to sell to Hull Property Group of Augusta, Ga., for $32.25 million, according to the company.
The other two properties are Randolph Mall in Asheboro, N.C., and Regency Mall in Racine, Wis.
Stephen Lebovitz, CBL’s chief executive, said Friday he anticipates the deal will close before the end of the year.
“The disposition program has made major progress this year,” he told analysts during a conference call.
Hull Property Group has completed its due diligence on the properties and posted a significant nonrefundable deposit, according to CBL.
Walnut Square last year saw one of its anchor stores, J.C. Penney, shut down after three decades as a key retailer at the mall.
Established in 1977 as Hull Properties Inc., that company acquires, develops and operates retail sites across the Southeast and focuses on middle market mall ownership.
The privately held company says it has a track record of acquiring and repositioning underperforming enclosed malls and shopping centers, with a portfolio in excess of 11 million square feet of leasable area.
Hull has acquired three malls so far this year, including Kingsport Town Center in Kingsport, Tenn., this summer. That 529,000-square-foot mall added to the company’s portfolio of 25 enclosed malls across 11 states, according to Hull.
Jim Hull, managing principal for the company, said in a statement with the Kingsport deal that Hull Property has “a programmatic approach to managing struggling enclosed malls in order to achieve a more successful future.”
Lebovitz said Friday that CBL has closed on 17 mall transactions representing more than $700 million.
The company CEO said the hope is to bring the disposition initiative to a close in 2017, and he urged analysts to take “a fresh look” at CBL.
“It’s not the same company it was two years ago,” he said. “We’ve transformed the portfolio and balance sheet, creating a stronger and stable company. The program has yielded tangible results.”
CBL owns, holds interests in or manages 144 properties, including 89 regional malls and open-air centers. Those include Hamilton Place mall and Northgate Mall in Chattanooga, which are not part of the disposition program.
In 2014, CBL announced plans to sell 21 of its shopping malls, about a quarter of its nationwide holdings, in an effort to upgrade its remaining properties and boost the company’s income.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.