CBL Properties officials said they have been getting ready for years for the loss of the Sears Department Store at Hamilton Place Mall.
Stephen Lebovitz, chief executive officer, said, “We have been preparing for an eventual Sears bankruptcy since 2013, when we purchased two Sears locations and transformed them into dining, retail and entertainment destinations.
“The Sears stores in our markets are well-located with excellent visibility, access and infrastructure. As a result, we have been able to attract high quality replacement users and new concepts that had not previously considered a mall environment. Additionally, we are able to pursue a number of non-traditional uses through partnerships. These other developers, be it multi-family, hotel or other use, recognize the immense value of these locations and are coming to us to take advantage of the great real estate that’s becoming available.”
On Monday, Sears announced anticipated store closures as part of its Chapter 11 bankruptcy filing. CBL stores on the closure list include Hamilton Place in Chattanooga, Jefferson Mall in Louisville, KY; Cross Creek Mall in Fayetteville, NC; Imperial Valley in El Centro, CA (location owned by a third party); Honey Creek Mall in Terre Haute, IN; and Governor’s Square Mall in Clarksville, Tn.(property owned in a 50/50 joint venture).
Officials said CBL is "proactively purchased the Sears locations at Hamilton Place, Jefferson Mall and Cross Creek in 2017 and has redevelopment plans in process for all three locations. In anticipation of a bankruptcy or additional closures by Sears, CBL has been actively marketing locations to replacement users. CBL has leases executed, out-for-signature or under negotiation for a majority of the locations leased by Sears in its portfolio. Additionally, CBL is pursuing opportunities to utilize ground leases, outparcel land sales and joint ventures to enhance returns while limiting the required investment and will also use construction loans for select projects to reduce the equity commitment."