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."


Top City Of Chattanooga Salaries

Here are the top salaries for the city of Chattanooga: Bean, Russell J       City Judge        $170,537.41 Paty, Sherry B City Judge        $170,537.41 Berke, Andrew L.        Mayor  $161,030 Fletcher, Frederick Allen Police Chief     ... (click for more)

House Fire In Brainerd Under Investigation

Chattanooga fire investigators are trying to figure out what started a fire in a large, two-story home in Brainerd.   The Chattanooga Fire Department received the alarm at  3:11 p.m.  and responded to 125 Shawnee Trail with four fire companies. The first firefighters to arrive from Station 13 saw smoke and flames coming from the roof. The firefighters used ... (click for more)

A Disturbing Trend At Exit 11 - And Response (5)

So, am I the first to notice a trend?   How many wrecks does exit 11 need before anyone asks "whats up with that?"  I have lost count of the wrecks that continue to happen, even after last year's awful loss of life (which I believe 51 percent of the blame should fall on the THP officer on duty).  The problem with this section of interstate are sight lines ... (click for more)

Roy Exum: A Story You Won’t See

In a puzzling time when the big daily newspapers have veered strongly away from “all the news that is fit to print,” allow me to share a story that you very likely will not see on CNN, ABC News, or in the big media conglomerates that influence the way you think, the way you react and – as a result – easily warp our common senses. This story is very true. Late last Sunday afternoon, ... (click for more)

Travis Hale New Softball Coach At Soddy-Daisy

Travis Hale, who spent one year under being groomed for the job, has been named the new softball coach at Soddy-Daisy High School. Hale, who previously was an assistant coach at Hixson and head coach at Loftis Middle School, was groomed for the job last season working under coach Wes Skiles, who has stepped down after four seasons. “I focused on paying attention to what ... (click for more)

Alex Smith Earns All-America Honors In AAU Volleyball

Alex Smith just graduated from Grace Academy in the spring after wrapping up an outstanding career with the Lady Golden Eagle volleyball team. The season didn’t go quite as well as they would have liked as Smith suffered an ankle injury and was sidelined toward the end at tournament time. However, all the news is not bad as Smith joined 10 other players who formed a team ... (click for more)