JCPenney At Northgate Mall Is Closing

Wednesday, January 15, 2014

CBL & Associates Properties, Inc. announced the closing of four JCPenney anchor locations, including the one at Northgate Mall.

Stephen Lebovitz, president & CEO, said, “One of our most attractive investments coming out of the recession has been to improve the performance of our properties through redeveloping under-performing anchor locations. The opportunities created by the four JCPenney closures announced today fit perfectly with that objective.

“While we have been encouraged by JCPenney’s recent improvements in sales and traffic, we have been anticipating certain store closures to occur. As we said in our most recent earnings call, we have been proactively engaging in discussions and gauging retail demand with this in mind and are pleased to announce strong interest for the locations expected to close in 2014. Our next steps will be to move forward with negotiations with retailers and finalize redevelopment plans. Once leases are signed, we will share specific retail names joining each mall, as well as construction and opening timelines. The list of retailers interested in these specific locations includes sporting goods, arts and crafts and other box retailers, as well as a traditional department store for one location, all of which will enhance the performance of the malls overall.”

JCPenney announced its intention to close four locations in the CBL portfolio at Hickory Point Mall in Forsyth, IL, Janesville Mall in Janesville, WI, Wausau Center in Wausau, WI, and Northgate Mall in Chattanooga. 

CBL anticipates store closures to occur in the second quarter. Three locations are leased from CBL. The Northgate Mall store is leased from a third party and CBL will work with the building owner to facilitate its redevelopment. The stores aggregate approximately 499,000 square feet and $1.4 million in gross annual rent. JCPenney will continue to pay rent until lease expiration.

Mr. Lebovitz added, “As part of our review process, we analyzed the co-tenancy provisions in small shops leases at these properties and determined that the financial exposure is immaterial. The significant and diverse retail demand for each location demonstrates the strength and resilience of our dominant mall properties. We look forward to the improved growth rates generated from these enhancements.”

Officials said, "Over the past three years, CBL has added or redeveloped more than 75 anchor and junior anchor locations to its portfolio comprising more than 2.2 million square feet. Today, other than locations under redevelopment, CBL has no vacant anchor locations in its core portfolio. The JCPenney stores that are closing are all prominently located in their malls with convenient parking and prime visibility, which will facilitate their repurposing. Based on CBL’s extensive track record of successful anchor redevelopment, similar projects have generally required 12-24 months to complete and an investment of $5–10 million generating initial unleveraged returns in the range of 7-10%. More specific cost and return information regarding the four locations will be announced as plans are finalized."


Upcoming City Council Agendas

Here are upcoming City Council agendas: Tuesday: I. Call to Order. II. Pledge of Allegiance/Invocation (Chairman Henderson). III. Minute Approval. IV. Special Presentation. “Proclamation – East Hamilton Middle-High School student Madison Hayes, 12 year old Major League Baseball’s Pitch, Hit and Run National Competition” By Councilman ... (click for more)

2 Students Arrested At Bradley County High School After Routine Drug Search

A routine drug search was conducted Friday at Bradley Central High School. The search was coordinated by Lieutenant Julie Quinn of the Bradley County Sheriff’s Department. Assistance was provided by the McMinn County Sheriff’s Department and the 10 th  Judicial Drug Task Force. Five canines were used in the search.  “I appreciate the cooperation from Sheriff Watson ... (click for more)

Don't Allow Us To Be Overrun By People Who Do Not Belong Here - And Response (4)

Thank you, Senator Corker, for your clear, concise evaluation of the president's attempt to bypass Congress and personally and independently establish national policy that violates our current immigration laws.   Our long-standing failure to enforce our laws to control illegal immigration across our southern border has made this country less safe and ... (click for more)

Roy Exum: Quick! Arm Our Guards

When I learned last Wednesday that Chattanooga’s leading hospital, in a ridiculous attempt to be more “family friendly,” planned to disarm its security guards. I was aghast but decided to wait for the proper “incident” to illustrate how stupid members of our “free thought society” can sometimes be. It took exactly one week. A bit after midnight on Thursday morning a gunman appeared ... (click for more)

Baylor Must Contend With MBA's Chandler In DII-AA Semis

If there is one thing different about Friday’s TSSAA Division II-AA semifinal playoff game between Baylor and Montgomery Bell Academy at Tommy Owen Stadium in Nashville from the teams’ regular-season matchup, Red Raiders coach Phil Massey knows exactly what it is. Or, well, who it is. It’s Ty Chandler. Chandler, a 6-foot, 180-pound sophomore running back, has added ... (click for more)

McCallie's Gordon Connell - a New Wrestling Venture

Saturday morning in Cleveland when five rookie wrestling officials from the Chattanooga area take to the mats to call matches for the season opening middle school tournament at Ocoee Middle School, it will be easy to pick out the one who, at first observation, doesn't belong. Or does he? With lots of gray hair and years of coaching experience, former ... (click for more)