Chattanooga-based CBL sells Walnut Square Mall in Dalton

File photo / Hull Property Group, new owner of Walnut Square Mall, plans to re-position and pump new life into the center.

Saying that Walnut Square Mall in Dalton, Ga., isn't hitting its potential, the center's new owner plans to work with local leaders and nearby property owners to bolster the overall retail area.

"We believe that it is important for a community to have a vibrant retail corridor and an aesthetically pleasing enclosed mall," said Jim Hull, managing principal of Hull Property Group. "There is a lot of work ahead, but we are long-term owners."

Augusta, Ga.-based Hull Property Group on Monday finalized the sale of Walnut Square and two other malls from CBL & Associates Properties Inc. for $32.25 million.

Randolph Mall in Asheboro, N.C., and Regency Mall in Racine, Wis., also were purchased from Chattanooga-based CBL, which is selling many of its lesser-performing properties.

Stephen Lebovitz, CBL's president and chief executive officer, said the shopping center company has sold eight malls in 2016.

"As we near the completion of this transformation, our portfolio and our company are stronger today than they have ever been," Lebovitz said in a statement. "We look forward to continuing to demonstrate the benefits of our strategy in our results and growth as we move into the new year."

Hull said his company has succeeded in revitalizing properties similar to Walnut Square, which was built by CBL in 1980.

He said Hull Property is aiming to improve the shopper experience and wants to "invest the time to get to know these communities and understand the best path forward."

Hull Property said it has 40 years of experience specializing in retail real estate and a track record of acquiring and re-positioning under-performing enclosed malls and shopping centers in small to mid-sized markets. Company officials said they have visited the properties on multiple occasions and begun initial community outreach to better learn each market.

Ky Widener, Hull Property's senior vice president of leasing, said it has several tenants already in each new mall that can contribute to a strong lineup of retail and restaurants.

"But to attract more stores we will need to improve the appeal of the property and demonstrate the potential for long term success," Widener said. "This will take time, but attracting the right tenant is crucial to enhancing the vitality of any mall and will be a big part of our effort as new owners."

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.

Lebovitz 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.

Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.