CBL Properties offloads Florida shopping center for $78.5M

CBL Properties (NYSE:CBL) completed the sale of Hammock Landing, an open-air shopping center in West Melbourne, Florida, for $78.5 million as part of its ongoing capital reallocation program.

The transaction was executed alongside the company's joint venture partner and included the buyer's assumption of an outstanding $43.8 million loan secured by the property.

When combined with the divestment of related infrastructure bonds during the first quarter, the transaction generated approximately $26 million in total net cash proceeds for the Chattanooga, Tennessee-based real estate investment trust.

The 397,000-square-foot retail asset was offloaded at an 8% capitalization rate, a yield metric that management indicated validates the current market value of its open-air retail portfolio.

Chief Executive Officer Stephen D. Lebovitz noted that the cash generated from the Florida property disposal effectively matches the equity capital required by the firm to finalize its acquisition of Gateway Mall earlier this year.

CBL Properties intends to redeploy the incoming cash reserves into higher-yielding operational opportunities across its remaining retail holdings.

The firm specializes in regional shopping properties, maintaining a national footprint that encompasses 87 assets across 23 states.

Its broader managed portfolio includes 55 enclosed regional malls, outlet centers, and lifestyle retail hubs alongside more than 20 open-air shopping complexes.