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."


Latest Hamilton County Jail Booking Report

Here is the latest jail booking report from Hamilton County: ADAMS, SHERKINA DIANE  561 ARLINGTON AVENUE CHATTANOOGA, 37404  Age at Arrest: 35 years old Arresting Agency: Chattanooga CONTRABAND IN PENAL INSTITUTIONS POSSESSION OF CONTROLLED SUBSTANCE --- ALMOND, GUS BERNARD  812 WOODMORE LANE CHATTANOOGA, 37411  Age at Arrest: 51 years old ... (click for more)

Chattanooga Cocaine Dealer, Who Said He Did It To Support His 7 Kids, Given 10-Year Federal Sentence

A Chattanooga cocaine dealer, who said he did it to support his seven kids, was ordered Monday to serve 10 years in federal prison. Reginald Dewayne McKenzie, who is originally from Atlanta and whose family is there, appeared before Judge Sandy Mattice. His attorney, Anthony Martinez of the Federal Defender's Office, said McKenzie finished high school and some college. ... (click for more)

Six Commissioners Owe Us An Explanation - And Response (2)

Two-thirds of the Hamilton County Commission owe us an explanation as to why they feel it appropriate to take $900,000 of our money out of savings to spend on whatever suits their fancy, oversight be darned.  Those six commissioners are: Randy Fairbanks (D-1), Jim Fields (D-2), Warren Mackey (D-4), Sabrena Turner-Smedley (D-7), Tim Boyd (D-8), and Chester Bankston (D-9).  ... (click for more)

Roy Exum: Tonight, Take A Second

Peter Whibberley, known globally as “The Time Lord,” will freely tell anyone, “There are consequences of tinkering with time,” but tinker we must because the world – planet Earth -- is spinning slower. So tonight at 7:59:60 p.m. EDT, the Senior Research Scientist at Britain’s National Physical Laboratory will add an extra second to the hour – and our day -- before it becomes 8:00 ... (click for more)

Fort Oglethorpe Swimmers Get First Win Of Season

There are a lot of positive and upbeat coaches in the Chattanooga Area Swim League, but perhaps none any more than Fort Oglethorpe veteran Tony Womac. This guy is always happy, always smiling and always offering something positive to those around him. He may have been just a bit more of all the above on Monday night after his Marlins defeated the Cumberland Currents in a home ... (click for more)

John Shearer: A Look At The Origin Of The Lady Vols’ Name

On Wednesday, the University of Tennessee is scheduled to drop the Lady Vols nickname from all women’s sports teams except the basketball squad.   The change has been a source of much debate, particularly in Knoxville. As evidence, several people wanting to keep the Lady Vols name protested last Thursday along Joe Johnson Drive, near where the UT board of trustees was meeting ... (click for more)