CBL & Associates Properties, Inc. (NYSE: CBL) today announced that it closed on a new 10/90 joint venture for Triangle Town Center and Commons in Raleigh, NC, with DRA Advisors LLC (DRA). The new joint venture acquired the property from the existing 50/50 joint venture between CBL and The Richard E. Jacobs Group for a total consideration of $174.0 million, including assumption of a $171.1 million loan secured by the property. CBL now holds a 10% ownership position in the asset and is responsible for leasing and managing, earning customary fees.
Concurrent with the formation of the new joint venture, the new entity closed on a modification and restructuring of the loan, which matured in December 2015. The modified loan has an initial term of three-years maturing in December 2018, with two one-year extension options available to the joint venture, for a final maturity date of December 2020. The interest was reduced from 5.737% to 4.0%, interest-only payments.
“We are pleased to enter into this new joint venture with a high-quality institutional investor,” said Stephen Lebovitz, CBL’s President & CEO. “With North Carolina’s only Sak’s Fifth Avenue and an excellent offering of retail, dining and entertainment, Triangle Town Center is well-positioned in the market. Along with our new partners, we are excited about executing on the center’s strong growth opportunities and elevating its position in the market. Additionally, the restructure of the existing loan provides the venture with favorable borrowing terms and the flexibility to move forward and unlock the center’s potential.”
Andrew Peltz, Managing Director of DRA, added: “We too are excited about unlocking the potential of Triangle Town Center and are prepared to invest fresh vision and capital to bring the asset to a new level. This property is ideally situated to capitalize on the path of growth within metropolitan Raleigh, and we look forward to working with CBL to position Triangle Town Center as one of Raleigh’s dominant retail destinations.”
CBL & Associates owns Northpark Mall in Joplin.