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: ACKLIN, LARRY JOSEPH  1212 SANFORD AVENUE CHATTANOOGA, 37411  Age at Arrest: 33 years old Arresting Agency: Hamilton County SPEEDING SEAT BELT LAW VIOLATION OPEN CONTAINER LAW CHILD RESTRAINT LAW VIOLATION DRIVERS TO EXERCISE DUE CARE --- AKERS, MICHAEL CHADWICK  8305 HEARON DRIVE ... (click for more)

Bradley County Woman Involved In Drug Ring Gets 63 Months In Federal Prison

Deborah Ruth Haney was sentenced on Monday to serve 63 in federal prison for selling meth. She appeared before Judge Sandy Mattice. Agents said Ms. Haney was in a drug ring with Lena Roberts, Joseph Varnell and others from July 2014 to February 2015. On Nov. 17, 2014, law enforcement conducted a controlled buy at Ms. Haney's residence in Bradley County. A confidential informant ... (click for more)

Tennessee River Gorge Trust Trail Warriors Make You Want To Take A Hike

Trail warriors of the Tennessee River Gorge Trust make you want to take a hike.  The Tennessee River Gorge Trust staff and volunteers make a huge difference in the Chattanooga community and have been making the outdoor areas around the River Gorge clean and protected for more than 30 years.  They deserve to be recognized and praised for all of the hard work they have ... (click for more)

Roy Exum: Why Our Schools Stink

Cheryl Roddy has spent her lifetime, for the biggest part, as a teacher for the Hamilton County Department of Education and, more specifically, at East Ridge High School. She has loved teaching there for nearly 40 years and is hardly “average;” she has her master's degree in education, was twice East Ridge’s teacher of the year, was the first teacher at East Ridge to reach the first ... (click for more)

Wilson, Hurricanes Pull Out 58-55 Win Against Baylor

From deep in the left corner, East Hamilton guard Vandrele Wilson, a 5-foot-7 junior, let fly with a 3-point shot, came back to the ground and stood concrete-still while watching the basketball hit nothing but net. As soon as the ball left his hand, Wilson was sure it was golden. The clutch 3-pointer gave East Hamilton a 56-55 lead over Baylor with 15 seconds remaining ... (click for more)

Hixson Holds Off Furious Late Comeback By East Ridge

The East Ridge Pioneers made an incredible comeback in the fourth quarter at Hixson Friday night, but unfortunately, close doesn’t count for much in high school basketball. The Wildcats didn’t exactly set the woods on fire with their free-throw shooting in the fourth quarter, but it was just good enough to save the day as Hixson prevailed by a 58-53 final in a game that really ... (click for more)