- CBL Properties is moving to return three retail assets, including Arbor Place Mall, to lenders.
- The firm is cooperating in foreclosure or loan resolution for malls in Georgia, Kentucky, and Pennsylvania.
- High occupancy is reported at Arbor Place, but refinancing challenges persist for other centers.
- CBL’s recent asset sales and repositioning reflect broader retail property headwinds.
Retail Asset Dispositions
According to CoStar, retail landlord CBL Properties is negotiating to return three shopping centers to their lenders. The properties include the 1.2M SF Arbor Place Mall in Georgia.
The Chattanooga-based REIT plans to cooperate in foreclosure or loan resolution efforts. These efforts involve Jefferson Mall in Louisville and The Outlet Shoppes at Gettysburg. The company may also include Arbor Place Mall in the process.
Loan and Occupancy Status
Arbor Place Mall is tied to an $85M CMBS loan set to mature on May 1, collateralized by a 546 KSF portion of the property. Despite sustaining occupancy near 98%, refinancing options are reportedly limited. The Outlet Shoppes at Gettysburg has defaulted on a $19.3M CMBS loan after failing to refinance at 80.5% occupancy.
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Lender Actions and REIT Strategy
Lenders are pursuing dual-track approaches that include both foreclosure proceedings and ongoing discussions with CBL. The REIT notified lenders it will not repay a $48.8M loan on Jefferson Mall, initiating a receivership and foreclosure process. The move comes as other public REITs also navigate capital markets strain, including one that recently secured a $1.1B refinancing to address mounting CLO obligations. Last year, CBL generated $240M from property sales and reinvested in four enclosed malls, but continued pressure on select assets has shaped its repositioning efforts.
What’s Next
CBL Properties’ cooperation with lender negotiations underscores the ongoing volatility in retail real estate. The company’s willingness to hand back malls highlights persistent distress in portions of the retail sector, despite isolated signs of strong leasing performance in some properties.
