CBL Properties (NYSE: CBL) closed two strategic land sales at Harford Mall in Maryland and Friendly Center in North Carolina. These transactions bring the company's year-to-date gross proceeds from land sales to mixed-use developers to more than $30 million.

The deals support the development of more than 515 Class A multifamily units, aligning with CBL’s strategy to unlock value from underappreciated land assets while enhancing portfolio value through complementary residential projects.

Transaction details and development plans

At Harford Mall in Bel Air, Maryland, CBL sold a 3.9-acre parcel to Cohere Development. The site is designated for a 249-unit luxury residential complex. Construction is expected to begin in the coming weeks, with an estimated opening in fall 2028.

At Friendly Center in Greensboro, North Carolina, CBL sold approximately 7 acres to Hines, a global real estate investment manager. This parcel will host a 270-unit Class A multifamily location adjacent to a Whole Foods store.

Portfolio context and prior activity

These closures follow earlier land dispositions completed by CBL this year. The company previously sold more than 10 acres, including the former Macy’s parcel at Harford Mall, to SJC Ventures for future mixed-use development. Additionally, approximately 6 acres at CoolSprings Galleria in Franklin, Tennessee, were sold to Greystar for a Class A multifamily project that began construction in June and is expected to be completed in 2028.

Stephen D. Lebovitz, chief executive officer of CBL Properties, stated that the sales demonstrate the embedded value of the company's real estate and the quality of its locations.

What the numbers show

The aggregate unit count across the two newly closed transactions (519 units) closely mirrors the total multifamily capacity supported by the year-to-date land sale program. When combined with the previously disclosed CoolSprings Galleria project and the unspecified unit count from the SJC Ventures deal, the data indicates a concentrated effort to convert large retail parcels into high-density residential inventory. The progression from earlier sales to these final closures suggests a systematic liquidation of non-core land assets to generate liquidity, with proceeds exceeding $30 million serving as a tangible metric of asset monetization efficiency.

CBL Properties (NYSE: CBL) and its 50% joint venture partner announced the closure of the sale of York Town Center, an open-air retail destination in York, Pennsylvania, for $50.65 million. The deal was completed at an approximate 8.5% capitalization rate.

Stephen D. Lebovitz, Chief Executive Officer of CBL Properties, stated that the transaction reflects continued investor demand for high-quality retail assets. He noted that the sale simplifies the company's structure by exiting another joint venture while advancing its capital recycling strategy. The proceeds allow the firm to monetize a mature asset for redeployment into higher-yielding opportunities.

What the Numbers Show

The sale price of $50.65 million implies a stabilized net operating income of approximately $4.3 million for the asset, derived from the disclosed 8.5% capitalization rate. This valuation metric indicates the yield investors require for this specific open-air retail property in the current market environment. The transaction also marks a reduction in CBL's joint venture exposure, streamlining its portfolio structure as it seeks to maximize shareholder value through active management and profitable reinvestment.

Portfolio Context

Headquartered in Chattanooga, Tennessee, CBL Properties owns and manages a national portfolio of market-dominant properties across 23 states. The company's owned and managed portfolio comprises 83 properties totaling 54.5 million square feet. This includes:

• 54 high-quality enclosed malls, outlet centers, and lifestyle retail centers
• 20 open-air centers and other assets

The company continues to focus on strengthening its portfolio through aggressive leasing and reinvestment.