Nevertheless, the company that owns Northpark Mall, CBL Properties, was prepared for the effect the bankruptcy would have on its malls that will have Sears stores closing and explained that preparation process in a news release issued today.
It has also been preparing for the possibility that other Sears stores will eventually close.
The release is printed below:
CBL Properties (NYSE: CBL) today provided an update on its redevelopment efforts related to Sears stores in its portfolio.
“We have been preparing for an eventual Sears bankruptcy since 2013, when we purchased two Sears locations and transformed them into dining, retail and entertainment destinations,” said Stephen Lebovitz, chief executive officer.
“The Sears stores in our markets are well-located with excellent visibility, access and infrastructure. As a result, we have been able to attract high quality replacement users and new concepts that had not previously considered a mall environment. Additionally, we are able to pursue a number of non-traditional uses through partnerships. These other developers, be it multi-family, hotel or other use, recognize the immense value of these locations and are coming to us to take advantage of the great real estate that’s becoming available.”
Yesterday Sears announced anticipated store closures as part of its Chapter 11 bankruptcy filing. CBL stores on the closure list include Hamilton Place in Chattanooga, TN; Jefferson Mall in Louisville, KY; Cross Creek Mall in Fayetteville, NC; Imperial Valley in El Centro, CA (location owned by a third party); Honey Creek Mall in Terre Haute, IN; and Governor’s Square Mall in Clarksville, TN (property owned in a 50/50 joint venture).
CBL proactively purchased the Sears locations at Hamilton Place, Jefferson Mall and Cross Creek in 2017 and has redevelopment plans in process for all three locations. In anticipation of a bankruptcy or additional closures by Sears, CBL has been actively marketing locations to replacement users. CBL has leases executed, out-for-signature or under negotiation for a majority of the locations leased by Sears in its portfolio. Additionally, CBL is pursuing opportunities to utilize ground leases, outparcel land sales and joint ventures to enhance returns while limiting the required investment and will also use construction loans for select projects to reduce the equity commitment.
Over the last three years, more than 35 redevelopment projects have been completed or are underway in the CBL portfolio, including nearly two dozen anchor store redevelopments, furthering the Company’s vision of creating a portfolio of diverse suburban town centers. Current projects include:
Brookfield Square, Brookfield, WI – former Sears is being transformed into an entertainment and dining destination with Marcus Theaters, Whirlyball entertainment center, a fitness operator and restaurants. A portion of the site was sold for development of a hotel and conference center.
Jefferson Mall, Louisville, KY – Round 1 will open in a former Macy’s location later this year.
York Galleria, York, PA – Earlier this year, Marshalls joined H&M & Gold’s Gym in the former JCPenney location.
Eastland Mall, Forsyth, IL – H&M, Outback and Planet Fitness are opening in the former JCPenney location.
Through these redevelopment efforts as well as dispositions of select assets, CBL has reduced its exposure to Sears and other underperforming anchors significantly. At year-end 2015, CBL had 53 Sears operating in its portfolio. With the planned closures announced yesterday, by year-end 2018 CBL anticipates 21 operating Sears stores in its core portfolio, including five locations leased by Sears and 16 owned by Sears or third parties.
Yesterday Sears announced anticipated store closures as part of its Chapter 11 bankruptcy filing. CBL stores on the closure list include Hamilton Place in Chattanooga, TN; Jefferson Mall in Louisville, KY; Cross Creek Mall in Fayetteville, NC; Imperial Valley in El Centro, CA (location owned by a third party); Honey Creek Mall in Terre Haute, IN; and Governor’s Square Mall in Clarksville, TN (property owned in a 50/50 joint venture).
CBL proactively purchased the Sears locations at Hamilton Place, Jefferson Mall and Cross Creek in 2017 and has redevelopment plans in process for all three locations. In anticipation of a bankruptcy or additional closures by Sears, CBL has been actively marketing locations to replacement users. CBL has leases executed, out-for-signature or under negotiation for a majority of the locations leased by Sears in its portfolio. Additionally, CBL is pursuing opportunities to utilize ground leases, outparcel land sales and joint ventures to enhance returns while limiting the required investment and will also use construction loans for select projects to reduce the equity commitment.
Over the last three years, more than 35 redevelopment projects have been completed or are underway in the CBL portfolio, including nearly two dozen anchor store redevelopments, furthering the Company’s vision of creating a portfolio of diverse suburban town centers. Current projects include:
Brookfield Square, Brookfield, WI – former Sears is being transformed into an entertainment and dining destination with Marcus Theaters, Whirlyball entertainment center, a fitness operator and restaurants. A portion of the site was sold for development of a hotel and conference center.
Jefferson Mall, Louisville, KY – Round 1 will open in a former Macy’s location later this year.
York Galleria, York, PA – Earlier this year, Marshalls joined H&M & Gold’s Gym in the former JCPenney location.
Eastland Mall, Forsyth, IL – H&M, Outback and Planet Fitness are opening in the former JCPenney location.
Through these redevelopment efforts as well as dispositions of select assets, CBL has reduced its exposure to Sears and other underperforming anchors significantly. At year-end 2015, CBL had 53 Sears operating in its portfolio. With the planned closures announced yesterday, by year-end 2018 CBL anticipates 21 operating Sears stores in its core portfolio, including five locations leased by Sears and 16 owned by Sears or third parties.
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