CBL & Associates Sells Two North Carolina Retail Centers for $40M
- Feb 22, 2012
February 22, 2012
By Barbra Murray, Contributing Editor
CBL & Associates Properties Inc. has sold two grocery-anchored retail centers in metropolitan Greensboro, N.C., pocketing a total of $40.4 million on the two separate transactions. The properties, Westridge Square and Oak Hollow Square, account for an aggregate 354,000 square feet of retail space.
CBL relied on the assistance of Holliday Fenoglio Fowler L.P. to secure buyers for the assets, both of which were unencumbered by debt and anchored by the same grocery chain. “We had strong interest from the investment community due to the fact that Harris Teeter is one of the top two grocery stores in that market,” Richard Reid, managing director with HFF, told Commercial Property Executive.
Westridge Square, located just outside of downtown Greensboro, pulled in $26.1 million in cash in its sale to Kimco Realty Corp. The 28-year-old community shopping center is 98 percent occupied and features two additional anchors, Kohl’s and Rite Aid, as well as a handful of outparcels.
Oak Hollow Square caught the eye of Fairway Investments and fetched $14.3 million. Located in High Point, 10 miles west of Greensboro, the 14-year-old property also counts Stein Mart as a lead tenant.
CBL utilized proceeds from the sale of the two assets to pay down the outstanding balance of an unsecured term facility that the company utilized to purchase the centers in November 2007. “We will continue to pursue non-core disposition activities where we can achieve attractive pricing,” Stephen Lebovitz, CBL president and CEO, said during the company’s recent fourth-quarter earnings conference call.
Grocery-anchored retail is an investor favorite at the moment so the competition is growing steeper, as are the price tags. “There is less supply of high-quality grocery-anchored properties in major markets and as the year goes on, it will be interesting to see if investors look to these secondary markets,” Reid said.