A real estate investment firm based in Tennessee has just acquired the Paddock Mall and three other shopping centers for an estimated $178.9 million.
CBL Properties announced the acquisition of the four malls from Washington Prime Group (WPG) on Tuesday. In a press release, the company stated that the acquisition reinforces the company’s position “as the preeminent owner and manager of successful enclosed malls in dynamic and growing middle markets.”
“We are thrilled to add these four dominant enclosed malls to the CBL portfolio,” said Stephen D. Lebovitz, CEO of CBL Properties, in a press release from the company. “Each property fits perfectly within our existing portfolio. They enhance CBL’s operating metrics, augmenting sales and occupancy and offer both near- and long-term growth opportunities.”
In addition to the Paddock Mall, the other properties included in the deal are the Ashland Town Center in Kentucky, Mesa Mall in Colorado, and Southgate Mall in Montana.
The company says the move is part of its effort to “redeploy proceeds from non-core asset sales into stable and growing assets that generate immediate accretion” to its cash yield.
“This transaction exemplifies our ability to strategically leverage the attractive valuations of our high-quality open-air and outparcel portfolio to fund investments in market-dominant enclosed malls,” added Lebovitz.
The sale of the Paddock Mall comes less than four months after WPG announced the termination of approximately 139 employees at its headquarters in Ohio. At the time, CoStar reported that WPG was going to sell over 70 shopping centers, including the Paddock Mall, and divest entirely from the mall industry.
The Paddock Mall opened in 1980 and sits on an 82-acre site at 3100 SW College Road in Ocala. In its press release, CBL Properties highlighted the mall’s “strategic” location near the intersection of State Road 200 and Interstate 75.
According to CBL Properties, the mall currently offers over 90 stores and highlighted the new Paddock Market, which was originally scheduled to open last October and has started to take shape in recent weeks.
Over the last couple of years, the Paddock Mall has welcomed multiple national vendors to its ranks. The mall now boasts outposts for lululemon, Torrid, Windsor, Popeyes, MINISO, Blossom Juicy Bar, Pandora, and Restaurant Depot.
The mall also recently welcomed a new Urban Country Outfitters boot store.
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