Midway Mall is not part of the Jacobs mall sale

Home (Main Menu)

NEWS ARTICLE from THE MORNING JOURNAl, 9-27-00,

"CLEVELAND (AP) -- CBL & Associates Properties Inc. has a deal to acquire 21 regional malls from the Richard E. Jacobs Group Inc. ...

The properties being acquired by CBL in Ohio are Eastgate Mall/Eastgate Crossing in Cincinnati and Towne Mall in Franklin/Middletown ...

The Jacobs Group has hired Goldman Sachs Group Inc. to explore the potential sale of most of its assets ... The CBL deal represents about 40 percent of the Jacobs Group's portfolio."

NEWS ARTICLE from THE PLAIN DEALER, 9-27-00, By CORWIN A. THOMAS, PLAIN DEALER REPORTER

[Jacobs get $106 million in cash]

"... The Richard E. Jacobs Group agreed to sell its interest in 21 shopping malls to CBL & Associates Properties Inc ...

CBL did not buy any malls in Northeast Ohio. Five of those - SouthPark Center in Strongsville, Westgate Mall in Fairview Park, Midway Mall in Elyria, Belden Village Mall in Canton and Richmond Mall in Mansfield - had been rumored to be on the block.

The Jacobs Group also retains ownership of three malls in Columbus; several properties in downtown Cleveland, including the Galleria and the Tower at Erieview as well as a half-interest in Key Tower; the Chagrin Highlands corporate office park; and a 500-ACRE RETAIL SITE IN AVON ...

It also owns several hotels, including the 403-room Cleveland Marriott Downtown at Key Center.

The group plans to sell more properties, Bill Fullington, vice president of marketing, said. He said he couldn t say which ones or when.

The sale to CBL is expected to be completed early next year. The Jacobs Group then will be able to name two people to the CBL board of directors, increasing its membership to nine, and it will have a 21 percent stake in the company ...

Jacobs ... did sell part of his stake in the Cleveland Indians to the public in 1998, raising $60 million ...

Earlier this year [2000], Jacobs sold the Indians to Chardon attorney Larry Dolan for $320 million ...

CBL, a Chattanooga-based real estate investment trust that owns regional malls and shopping centers, will pay $106 million in cash and $12 million in closing transaction costs and assume $733.8 million in debt. CBL also will issue 11.9 million units of its operating partnership valued at $384.8 million ...

CBL will fully own 12 of the 21 malls and may buy out the interests of those who partnered with Jacobs Group in the others.

CBL's portfolio will increase from 138 to 160 properties and from 30 to 51 malls, said John Martin, CBL's vice president of corporate relations and marketing ..."

E-mail: cthomas@plaind.com

NEWS ARTICLE from THE MORNING JOURNAl, 9-28-00, Staff

"Midway Mall not part of latest Jacobs mall sales

ELYRIA -- Midway Mall in Elyria is not among the 21 regional malls The Richard E. Jacobs Group sold to CBL & Associates Properties of Chattanooga, Tenn ...

An official with the Jacobs Group, headquartered in Westlake, could not comment yesterday as to the status of the sale of the Midway Mall ...

The malls being sold by Jacobs to CBL are:

Illinois: CherryVale Mall, Rockford.

Kentucky: Fayette Mall in Lexington, Jefferson Mall in Louisville and Kentucky Oaks in Paducah.

Michigan: Fashion Square Mall in Saginaw and Midland Mall in Midland.

North Carolina: Randolph Mall in Asheboro, Cary Towne Center in Cary and Hanes Mall in Winston-Salem.

Ohio: Eastgate Mall/Eastgate Crossing in Cincinnati and Towne Mall in Franklin/Middletown.

South Carolina: Citadel Mall in Charleston, Northwoods Mall in North Charleston and Columbia Mall in Columbia.

Tennessee: Old Hickory Mall, Jackson.

Texas: Parkdale Mall, Beaumont.

Wisconsin: East Towne Mall and West Towne Mall, both in Madison, Brookfield Square in Milwaukee, Regency Mall in Racine and Wausau Center in Wausau."

Some Jacobs malls Not Salable?

NEWS ARTICLE from CRAIN'S CLEVELAND BUSINESS, 10-12-00, By STAN BULLARD

"The names of two shopping mall titans -- one familiar, one little-known -- are surfacing as potential buyers of the remaining portion of ]the Richard E. Jacobs Group shopping mall empire that's on the block.

The well-known name is Rouse Co., the famed real estate developer from Columbia, Md., that owns Beachwood Place in Beachwood. The lower-profile potential buyer is The Macerich Co., a Santa Monica, Calif., shopping mall owner ...

One person familiar with the situation who asked not to be identified said three Greater Cleveland malls in the Jacobs Group portfolio -- SouthPark Center in Strongsville, Westgate Mall in Fairview Park and Midway Mall in Elyria -- are among those Rouse is considering buying ...

The Richard E. Jacobs Group ... pending sale of 21 malls ... to CBL & Associates Properties Inc. of Chattanooga, Tenn ...

In the $1.2 billion transaction, which is awaiting CBL shareholder approval, the Jacobs Group will receive $106 million in cash and CBL will assume $734 million of debt on the properties. If shareholders approve the move, Jacobs Group would receive special common units that will be convertible on a one-to-one basis to shares of CBL, a publicly traded real estate investment trust, at a value now pegged at $385 million ..."

The Latest News

Jacobs -- Top -- Home -- What's New