Exhibit 99.1
[LETTERHEAD OF CBL & ASSOCIATS PROPERTIES, INC.]
Investor Contact: Katie Reinsmidt Media Contact: Deborah Gibb
Director of Investor Director of Corporate
Relations Relations
(423) 490-8301 (423) 490-8315
THE JACOBS GROUP AND CBL ANNOUNCE JOINT VENTURE OF
TRIANGLE TOWN CENTER IN RALEIGH, NC
CLEVELAND, Ohio and CHATTANOOGA, Tenn. (October 25, 2005) - The Richard E.
Jacobs Group, Inc. and CBL & Associates Properties, Inc. (NYSE: CBL) today
announced that they have entered into a definitive agreement to form a 50/50
joint venture to own Triangle Town Center and its associated and lifestyle
centers, Triangle Town Place and Triangle Town Commons, in Raleigh, NC
("Triangle Joint Venture"). CBL will assume management, leasing and any future
development responsibilities of the property.
The Triangle Joint Venture is valued at $283.5 million based on in-place
Net Operating Income (NOI) of $15.3 million. Concurrent with its formation,
Triangle Joint Venture will enter into a new ten-year, fixed rate non-recourse
loan in the range of $195 million to $203 million, secured by the collective
centers. The proceeds from the loan will be used to retire an existing
construction loan totaling approximately $121.0 million with the balance paid to
The Jacobs Group. CBL will make no initial capital contribution to the joint
venture. The joint venture equity will be equalized between CBL and The Jacobs
Group through future property cash flow distributions.
"Our long standing relationship with The Jacobs Group has been extremely
rewarding to CBL and its shareholders and we are pleased to join together once
again," said Charles B. Lebovitz, chairman and chief executive officer of CBL &
Associates Properties, Inc. "Triangle Town Center is a young, fresh project
located in one of the fastest growing markets in the nation. The property has
only just begun to show its potential and we are excited to take advantage of
the variety of opportunities it presents for creating long-term value with
leasing, specialty leasing, outparcel and future developments. We believe we can
enhance this already strong center, heightening the shopping, dining, and
entertainment experience for area consumers."
"Triangle Town Center is well-positioned to become one of the dominant
retail centers in the Southeast," said Richard E. Jacobs, chairman and chief
executive officer of The Jacobs Group. "We are very proud of the success we've
built in Raleigh and pleased to again welcome CBL as our partner."
Triangle Town Center, a 1.3-million-square-foot super-regional mall, opened
in August 2002 in one of the fastest growing cities in the United States,
Raleigh, NC. In addition to being the capital of North Carolina, Raleigh is the
state's second largest city with a population of over 1.3 million in the
Metropolitan Statistical Area (MSA). The mall is located at the intersection of
Capital Boulevard and the newly constructed I-540 northern beltway.
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The Jacobs Group and CBL Announce Joint Venture
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October 25, 2005
Triangle Town Center is an architecturally impressive shopping destination
with over 360,000 square feet of mall shops and restaurants including Adrienne
Vittadini, bebe, Chico's, Coldwater Creek, California Pizza Kitchen, Guess,
William Sonoma, and United Colors of Benetton. The mall is currently 87.0%
occupied and is anchored by Belk, Dillard's, Hecht's, Sears, and Sak's Fifth
Avenue, which joined the mall in September 2004. Triangle Town Center currently
produces same stores sales of $329 per square foot.
Located directly across Sumner Boulevard on the south side of the mall is
Triangle Town Place, a 150,000-square-foot associated center featuring a Bed,
Bath & Beyond, Dick's Sporting Goods, DSW Shoes, Party City, and Ulta Cosmetics.
Triangle Town Place is in the final stages of development and is currently 100%
leased and committed.
Triangle Town Center also features a 103,000-square-foot lifestyle
component, Triangle Town Commons, which opened in late 2004. The lifestyle
element offers consumers an array of attractive stores such as North Carolina's
only Orvis, as well as Identity W, Pier One Kids, Atlanta-based Swoozie's, and
Men's Wearhouse, as well as a wide variety of restaurant options including The
Bamboo Club Asian Bistro, Champps Americana, The Twisted Fork Restaurant, and
Ted's Montana Grill. The shops and restaurants are all housed in an inviting
open-air, pedestrian-friendly environment. Shoppers enjoy a unique ambiance
within the lifestyle center, created through extensive landscape design features
such as decorative river rock, textured pavers, convenient walking bridges, and
a river flowing throughout the common area, all culminating at a multi-tiered
water fountain. The lifestyle expansion is currently 71.0% leased and committed.
ABOUT CBL & ASSOCIATES PROPERTIES, INC.
CBL & Associates Properties, Inc. is the fourth largest mall REIT in North
America and the largest owner of malls and shopping centers in the Southeast,
ranked by GLA. CBL owns, holds interests in or manages 124 properties, including
73 regional malls/open-air centers. The properties are located in 24 states and
total 68.0 million square feet including 2.0 million square feet of non-owned
shopping centers managed for third parties. CBL currently has six projects under
construction totaling approximately 1.1 million square feet. The projects
include one open-air shopping center located in Lee County, FL, two community
centers and three expansions. In addition to its office in Chattanooga, TN, CBL
has a regional office in Boston (Waltham), MA. Additional information can be
found at cblproperties.com.
ABOUT THE RICHARD E. JACOBS GROUP, INC.
The Richard E. Jacobs Group has long been one of America's premier owners
and developers of commercial real estate. Founded in 1955 and headquartered in
Cleveland, OH, the privately held company was one of the nation's pioneer
developers of regional malls. Headed by its co-founder and Chairman, Richard E.
Jacobs, the firm developed and owned over 40 major mall properties from coast to
coast.
Today, The Jacobs Group continues as a major developer of retail centers,
office and hotel properties and mixed-use developments. Among its other premier
properties are Chagrin Highlands, a 630-acre corporate community in Cleveland,
OH; Cypress Creek Town Center, a 1.4 million-square-foot lifestyle center under
development in Pasco County, FL; and Gulf Coast Town Center, a 1.7
million-square-foot regional center under construction in Lee County, FL - a
50/50 joint venture with CBL.
Information included herein contains "forward-looking statements" within
the meaning of the federal securities laws. Such statements are inherently
subject to risks and uncertainties, many of which cannot be predicted with
accuracy and some of which might not even be anticipated. Future events and
actual events, financial and otherwise, may differ materially from the events
and results discussed in the forward-looking statements. The reader is directed
to the Company's various filings with the Securities and Exchange Commission,
including without limitation the Company's Annual Report on Form 10-K and the
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" incorporated by reference therein, for a discussion of such risks
and uncertainties.
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