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."


Zoning Approved For New Collegedale Subdivision; Rains Put Back Imagination Station Opening

At the Collegedale commission meeting Monday night, Commissioner Ethan White questioned a zoning change for the second time. At the commission meeting on April 6, he requested that the project planned for 9700 Bill Reed Road be sent back to the planning commission before the second and final reading. At that time, he was concerned that cars would be backing out of driveways onto ... (click for more)

Latest Hamilton County Jail Booking Report

Here is the latest jail booking report from Hamilton County: ADBULAZEER, MOHAMMAD YOUSSDUF  1902 COLONIAL WAY CIR CHATTANOOGA, 37343  Age at Arrest: 24 years old Arresting Agency: Chatt. Housing Authority DUI - 1ST OFFENSE DRIVING ON ROADWAYS LANED FOR TRAFFIC, VIOLATION IMPLIED CONSENT LAW - DRIVERS --- AYALA, JOSE  1 ECHOTA RD CALHOUN, 30701  ... (click for more)

Time-Out On Housing PILOTs

Kudos to the? ?City Council? ?and County Commission for? ?beginning thoughtful discussions about housing PILOTs. A growing number of? ?citizens from across the political spectrum hope you? ?continue your ?good work by calling a time-out on? ?housing PILOTs until you? ?adopt policies and procedures about how these tax breaks are evaluated, monitored and enforced.  I suggest ... (click for more)

Roy Exum: Why The British Attacked

This was a pretty big week exactly 240 years ago and what happened then is really important now. The British Army, after arriving in increasing numbers seven years before, decided to launch a sneak attack on Concord, Mass., and several other towns in mid-April of 1775. Their purpose was simple: take away every gun you can find. Confiscate every weapon of any kind. It was believed ... (click for more)

Zach Mercer No-Hits Notre Dame In 1-0 Duel With Alex Darras

Zach Mercer has won some big baseball games during his career as a pitcher for the Chattanooga Christian Chargers, but none have been any bigger than the 1-0 victory over visiting Notre Dame Monday afternoon. And he was almost perfect as only a fourth-inning walk to opposing pitcher Alex Darras and another walk to Quinton Buckman in the seventh kept it from being a perfect game. ... (click for more)

Lookouts Bullpen Fails As M-Braves Rally With 6-5 Wallk-Off Win

PEARL, MS -- Lookouts' Southern League Pitcher of the Month Tyler Duffey understands how it feels to pitch shutout baseball but end up with a no-record game. Duffey has had it happen twice. Monday, in his first start of the season, Alex Wimmers worked five shutout innings allowing just one hit while fanning three. But the Mississippi Braves scored four runs in the eighth and two ... (click for more)