Real estate investment trust (REIT) CBL Properties sold its self-storage portfolio for $42 million. Developed with an unidentified joint-venture partner, the properties were connected to the company’s shopping-center interests in Beaumont, Texas (Parkdale Mall); Chattanooga, Tennessee (Hamilton Place); Cincinnati, Ohio (Eastgate Mall); and St. Charles, Missouri (Mid Rivers Mall), according to a press release.
“The sale of this portfolio is a great example of the types of value creation opportunities we are pursuing across our portfolio,” said Stephen Lebovitz, CEO of CBL. “We developed these assets with less than $300,000 of cash invested, utilizing existing land as our equity. Within three years of starting this program, we are able to take advantage of terrific pricing and monetize the assets to provide additional cash for the company.”
CBL’s share of the transaction was $22 million. After repaying recourse loans secured by the properties, the sale generated $8.5 million in cash for the company, the release stated.
Founded in 1979, CBL specializes in shopping-center investments primarily in the Midwest and Southeast. Its portfolio of 99 properties comprises 63 million square feet across 24 states. It’s organized in Delaware and headquartered in Chattanooga. It went public as a REIT in 1993. It’s traded on the New York Stock Exchange.
Source: Business Wire, CBL Properties Completes Sale of JV Storage Portfolio