Missouri Steps Up to Keep Companies from Crossing the Border; CBL Sells 50 Percent of Oak Park Mall in $1.09 Billion Joint Venture
- Oct 14, 2011
Once again the ongoing border war is making headlines this week in Kansas City. The Kansas City Business Journal reports the Missouri House passed a bill that will offer up to $30 million in tax credits to aid in the redevelopment of the 215-acre former Bannister Mall site. The developer of the project, Trails Properties II, announced through its attorney Chase Simmons of Polsinelli Shughart PC that it is offering attractive deals for office space to several companies.
Though no particular company was named, the St. Louis Post-Dispatch reports that supporters of the bill believe it will help the Kansas City office to attract Teva Neurosciences, a company that otherwise was considering switching over to the other side of the border—to Kansas. Teva is a subsidiary of Israel-based Teva Pharmaceuticals Industries LTD. It has approximately 300 employees at its current Kansas City location at 901 E. 104th St.
Trails Properties, which is comprised of Cerner Corp. executives and principals of Lane4 Property Group Inc., is planning a $590 million redevelopment which will include 1.1 million square feet of retail space, 1.5 million square feet of office and tech space, and 150 hotel rooms.
Interesting news appeared in Overland Park as well regarding the largest enclosed mall in the Kansas City area. CBL & Associates Properties Inc. has completed the sale of half of Oak Park Mall as part of a $1.09 billion real estate joint venture. TIAA-CREF has received a 50 percent interest in three enclosed malls: Oak Park Mall, West County Center in St. Louis, MO and CoolSprings Galleria in Nashville, TN as well as 12 percent interest in Pearland Town Center.
CBL reduced the outstanding debt balances by approximately $486 million through TIAA-CREF’s assumption of approximately $267 million of property-specific debt and cash proceeds of approximately $219 million. CBL will continue to manage and lease the properties.