The Chattanooga-based owner of Northgate Mall and Hamilton Place has purchased four regional malls in Kentucky, Colorado, Florida and Montana for nearly $179 million.
Stephen Lebovitz, the CEO of CBL Properties, said the acquisition fits into the company’s strategy to own dominant malls in growing middle markets. The company’s portfolio encompasses 89 properties totaling 55.4 million square feet across 22 states.
“This really checked all the boxes,” Lebovitz said about the purchase.
The properties include:
— The Ashland Town Center in Ashland, Kentucky, a single-level enclosed shopping mall that opened in 1989. The mall spans more than 420,000 square feet and includes 70 retailers and restaurants, including JCPenney, Belk, TJ Maxx and Five Below.
— Mesa Mall, the largest indoor shopping center in western Colorado. Totaling more than 733,000 square feet, the mall is in Grand Junction and includes more than 120 stores and services. It’s anchored by major national retailers that include Cabela’s, Dillard’s, JCPenney, Target and Dick’s Sporting Goods.
(READ MORE: Chattanooga-based CBL Properties had more than 1 million square feet in new tenants in 2022)
— Paddock Mall is a single-level enclosed shopping center in Ocala, Florida. Situated on an 82-acre site along state Road 200, the mall opened in 1980 and totals about 550,000 square feet and features more than 90 stores and restaurants. It’s anchored by a JCPenney, Macy’s and Belk. A fourth anchor space, formerly Sears, is under redevelopment as the Paddock Market.
— The Southgate Mall is the largest enclosed shopping center in western Montana. Opened in 1978, the mall spans about 546,000 square feet and features more than 85 stores and restaurants. AMC Theatres, Scheels All Sports and Dillard’s are among the center’s anchor tenants.
“Over time, we’re confident that these are going to be winners and keepers,” Lebovitz said.
The averages sales per square foot at the four malls are on par with the CBL’s other properties, Lebovitz said, and they’re about 88% occupied.
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“It’s got solid occupancy but also the opportunity for us to improve the tenant mix and also to grow the revenues,” Lebovitz said. “These are the only malls in their markets. They’re solid performers with opportunity to make them even better.”
CBL purchased the properties from Washington Prime Group, a retail landlord that CoStar reported in April is selling its remaining properties and laying off 139 employees at its headquarters. This comes almost four years after the company filed for bankruptcy protection during the pandemic.
In 2024 and 2025, CBL sold more than $241 million worth of malls, open-air centers and out-parcels. Most recently, the company closed the $83 million sale of the Promenade in D’Iberville, Mississippi. That, in turn, helped finance the purchase of these four regional malls.
(READ MORE: How Katie Reinsmidt parlayed a Chattanooga weekend into two decades at CBL Properties)
As part of this transaction, CBL was able to modify and extend an existing loan with Beal Bank USA, increasing the principal balance by $110 million.
Lebovitz said the financing market for malls was difficult coming out of COVID.
“There’s been a lot more stability in the bottom line of our malls,” Lebovitz said. “Last year, we had positive growth, which we haven’t had in several years. That was a good sign, and I think lenders just feel more confident in malls. And not just Lenox Square in Atlanta but the dominant malls in middle markets as well.”
Contact business reporter David Floyd at [email protected] or 423-757-6249.
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