CBL Properties Buys Gateway Mall for $43.5M, Sells Open-Air Center for $25M
CBL Properties acquired Gateway Mall in Lincoln, Nebraska, for $43.5 million funded by a $21.0 million non-recourse loan at 6.46%. The company also agreed to sell an open-air center at an 8% capitalization rate to generate $25 million net proceeds after debt repayment, closing in April.
1. Acquisition of Gateway Mall in Lincoln
CBL Properties completed the $43.5 million acquisition of Gateway Mall from Washington Prime Group. The 843,000-square-foot enclosed center serves over 1.3 million residents, features more than 95% small-shop occupancy and includes anchors such as Dillard’s, JCPenney, Dick’s Sporting Goods and Tesla. A $21.0 million non-recourse, five-year loan at 6.46% financed the deal.
2. Sale of Open-Air Center Generates $25M Proceeds
The company entered into a firm contract to sell an open-air retail center at an approximate 8% capitalization rate. The transaction is expected to close in April and yield $25 million in net proceeds after debt repayment, supporting the capital recycling strategy.
3. Strategic Portfolio and Cash Flow Impact
These transactions align with the company’s strategy to focus on market-dominant enclosed malls and drive accretive returns. The sale redeploys capital from stabilized assets into higher-yield properties, enhancing cash flow yield and strengthening the portfolio’s growth profile.