Chattanooga, Tenn. -- CBL & Associates Properties said Thursday that it has agreed to acquire Northgate Mall in CBL’s hometown of Chattanooga, for $11.5 million in cash.
The mall was listed for sale through an online auction. CBL anticipates closing on the transaction by Oct. 6.
“This transaction represents a unique and special opportunity for us to grow our presence in our hometown,” said Stephen Lebovitz, president and CEO, CBL. “Northgate Mall is well-located in a growing part of Chattanooga, with tremendous access and visibility. We believe that the property can be better positioned to meet the growing need for retail in the area. We are already exploring the best way to reposition the center to serve the area and will look forward to making additional announcements as plans solidify.”
Following the close of the acquisition, CBL plans to revitalize the property through redevelopment, which may include the addition of junior anchor stores and restaurants and repurposing the adjacent community center. CBL envisions creating a destination that will better serve the area north of the Tennessee River while complementing Hamilton Place Mall’s position as the dominant fashion outlet in the market.
Northgate Mall is an 823,000-sq.-ft. enclosed regional mall anchored by Belk, J.C. Penney and Sears, and features a freestanding 14-screen state-of-the-art Carmike Cinema and a 70,000-sq.-ft. community center occupied by TJ Maxx and Catherine’s.
CBL owns and manages Hamilton Place Mall, a 1.3-million-sq.-ft. dominant super-regional enclosed mall as well as five associated centers and two office buildings, including its headquarters, in the Chattanooga market.