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.
Minot has experienced significant growth in recent years. A major contributor to the Minot economy, the Minot Air Force Base has benefited from the Defense Base Closure and Realignment Commission (BRAC) and is one of the only ICBM bases in the United States. In addition, Minot is located near the Bakken Shale Formation, with oil reserves estimated at 24 billion barrels. With new rock-fracturing technology made available in 2008, Bakken production has boomed. As a result, the area has experienced a tremendous influx of population. The unemployment rate in Minot is one of the Nation’s lowest at 3.6%.About CBL & Associates Properties, Inc. CBL is one of the largest and most active owners and developers of malls and shopping centers in the United States. CBL owns, holds interests in or manages 160 properties, including 90 regional malls/open-air centers. The properties are located in 27 states and total 87.3 million square feet including 3.6 million square feet of non-owned shopping centers managed for third parties. Headquartered in Chattanooga, TN, CBL has regional offices in Boston (Waltham), MA, Dallas (Irving), TX, and St. Louis, MO. Additional information can be found at cblproperties.com. Information included herein contains "forward-looking statements" within the meaning of the federal securities laws. Such statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual events, financial and otherwise, may differ materially from the events and results discussed in the forward-looking statements. The reader is directed to the Company's various filings with the Securities and Exchange Commission, including without limitation the Company's Annual Report on Form 10-K and the "Management's Discussion and Analysis of Financial Condition and Results of Operations" incorporated by reference therein, for a discussion of such risks and uncertainties.