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."


Red Bank Commission Agenda For Tuesday

Here is the Red Bank Commission agenda for Tuesday: I. Call to Order – Mayor John Roberts  II. Roll Call – City Manager  ___ Mayor Roberts, ___ Vice-Mayor Pierce, ___ Commissioner Causer, ___ Commissioner LeCompte, ___ Commissioner Pope  III. Invocation – IV. Pledge of Allegiance –  V. Consideration of the Minutes for approval or correction:  ... (click for more)

City Council Incumbents Anderson, Gilbert, Freeman, Hakeem Pick Up Papers Seeking Re-Election

Four City Council incumbents have picked up papers for the March 7 city election. The latest getting qualifying petitions are Russell Gilbert in District 5, Chris Anderson in District 7 and Yusuf Hakeem in District 9. Moses Freeman in District 8 picked up earlier. Anthony Byrd is a possible challenger. Former District 7 Councilman Manny Rico has already qualified. Others ... (click for more)

Outrageous To Give Vehicles To Nation Of Islam Neighborhood Patrol - And Response (3)

Chief of Police Fred Fletcher of the Chattanooga Police Department has recently decided to give two surplus patrol vehicles to the Nation of Islam Neighborhood Patrol. This is an insult to the life and memory of PO Philip Cardillo who lost his life in April 1972 at the hand of the members of the Nation of Islam Mosque No.7 in Harlem and his fellow officers who were savagely beaten ... (click for more)

Roy Exum: The Knobfather & Me

I’ve seen some beautiful things in my life. I’ve eaten dinner inside the Eiffel Tower with the city of Paris all aglitter below. I’ve been sprayed by champagne in the Dallas Cowboys’ dressing room after they won the Super Bowl. I’ve stood both at the top and at the bottom of the Grand Canyon. I’ve snorkeled in the Great Exuma islands, learned to snow ski in the Austrian Alps, and ... (click for more)

Quick-Strike Marion County Too Much For Tyner

The Marion County Warriors didn’t do a whole lot offensively in the second half, but they more than made up for it in the first half as they defeated the Tyner Rams by a 25-6 final at Finley Stadium Thursday night. The Warriors were forced to punt on their first possession, but they scored touchdowns on their next four possessions and that was more than enough to secure a big ... (click for more)

Signal Mountain Volleyballers Power Past Ooltewah

Signal Mountain unleashed a potent front-line attack on Ooltewah on Thursday and the Lady Eagles blew past the Lady Owls 3-0 in  non-district volleyball action at Edward M. Foster Gymnasium. The set scores were 25-19, 25-22 and 25-15. Signal Mountain’s Aubrie Johnson, Maia Rackel and Olivia Powers combined for 30 kills and that proved to be a deciding factor in the ... (click for more)