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CBL & Associates Properties, Inc. (NYSE: CBL), today announced the acquisition of Dakota Square Mall in Minot, ND. CBL acquired the property from the Lightstone Group.
“Dakota Square Mall is a textbook example of our dominant mall strategy. The center holds an unrivaled franchise position within a growing and economically diverse regional market. We are pleased to enhance our portfolio with this acquisition,” stated Stephen Lebovitz, president and CEO of CBL & Associates Properties, Inc. “Dakota Square Mall offers significant immediate and long-term upside potential with below-average occupancy costs as well as opportunities for conversions of temporary tenants to permanent leases. We anticipate adding value through these opportunities as well as capitalizing on the substantial growth the market is experiencing.”
Dakota Square Mall was acquired for a total consideration of $91.475 million, including the assumption of a $59.0 million loan. The loan matures in November 2016 and bears a fixed interest rate of 6.23%.
Dakota Square Mall is a single-level, enclosed super-regional mall located in Minot, ND. The 622,000-square-foot mall is anchored by a nine-screen Carmike Cinema, Herberger’s, JCPenney, Sears, Target, Barnes & Noble and Scheels All Sports. The mall generated sales of $470 per square foot for the twelve months ended March 31, 2012. As of March 31, 2012, the center was 94% occupied, offering a great selection of stores and restaurants including American Eagle Outfitters, Bath & Body Works, The Buckle, Victoria’s Secret, Footlocker, and Grizzly’s Grill & Saloon. The 176-room Sleep Inn Suites & Hotel and Splashdown Dakota Super Slides indoor water park is located adjacent to the mall, connected with an interior mall entrance.
Dakota Square Mall serves a wide trade area reaching across the Canadian border into the Canadian provinces of Saskatchewan and Manitoba. The mall was originally built in 1980 and expanded several times, including the addition of Barnes & Noble in 2008 and a new nine-Screen Carmike Cinema. Sheels All Sports recently completed a 9,000-square-foot expansion to its store.