CBL & Associates Properties Inc. has sold Foothills Mall in Maryville and College Square Mall in Morristown to New York-based Time Equities Inc. for a combined total of $53.5 million.
The newly acquired malls are now the real estate firm’s largest retail assets in the state of Tennessee, with additional holdings in Memphis, Nashville, Bristol and Bartlett. The Daily Times reported the sale May 4, but the buyer’s identity had not yet been disclosed.
Ami Ziff, director of national retail at TEI, said College Square and Foothills Mall were a “natural fit” for the company’s Southeastern expansion.
“These two assets were a natural fit for our growing portfolio of enclosed malls given their stable anchors, increasing tenant sales, tremendous leasing momentum and growth potential,” Ziff said in a prepared statement. “As brands and landlords continue to navigate the evolving retail market, College Square and Foothills Mall offer TEI the platform to showcase the next generation of the enclosed mall.”
Opened by CBL & Associates Properties in 1983, Foothills Mall, 197 Foothills Mall Drive, currently has a 90-percent occupancy rate, with tenants that include J.C. Penney, T.J. Maxx, AMC Theater and Chick-fil-A.
Located in the “hub” of East Tennessee in Morristown, College Square Mall, 2550 E. Morris Blvd., is 96-percent occupied by tenants such as Belk, Dick’s Sporting Goods, AMC Theater, Ulta Beauty and Longhorn Steakhouse.
tenants to be added
Ziff said Urban Retail Properties LLC will oversee the leasing process to add new national and regional tenants at both malls. The properties will also undergo a series of capital improvements aimed at updating the physical appearance of the retail centers.
“This is our most substantial venture in Tennessee to date, and we’re going to work diligently to ensure that we provide the residents of Maryville and Morristown with two dynamic retail centers that deliver memorable shopping experiences,” Ziff said.
Founded in 1966, TEI owns more than 26 million square feet of residential, industrial, office and retail properties in 29 states, five Canadian provinces, Germany, the Netherlands and Anguilla in the British Virgin Islands.