CBL Properties Acquires Gateway Mall in Lincoln, Nebraska, Sells Open-Air Shopping Center
CBL Properties has announced two major transactions that reinforce the company’s ongoing strategy of strengthening its retail portfolio while improving cash flow through strategic capital allocation. The company revealed that it has completed the acquisition of a prominent enclosed shopping mall while simultaneously entering into an agreement to sell an open-air retail center. Together, these moves highlight CBL’s focus on expanding its presence in high-performing malls and recycling capital from other assets to support long-term growth.
As part of the first transaction, CBL finalized the purchase of Gateway Mall, a well-established and market-leading enclosed shopping center located in Lincoln, Nebraska. The property was acquired for a total purchase price of $43.5 million from Washington Prime Group, a retail real estate investment company that owns and operates numerous shopping centers across the United States.
Gateway Mall is widely recognized as a dominant retail destination in the Lincoln market, serving both local residents and shoppers from surrounding communities. The property features a diverse mix of national retailers, regional brands, and dining options that attract consistent foot traffic. Its strong location within a growing metropolitan area makes it a valuable addition to CBL’s portfolio of enclosed shopping malls.
To finance the acquisition, CBL secured a $21.0 million loan from Symetra Life Insurance Company. The financing is structured as a non-recourse loan with a five-year term, meaning the lender’s claim is limited to the property itself rather than the company’s broader assets. The loan carries a fixed interest rate of 6.46%, providing predictable financing costs for the duration of the term. This structure allows CBL to manage its capital efficiently while maintaining flexibility within its broader financial strategy.
In addition to the Gateway Mall purchase, CBL also announced a second transaction involving the sale of an open-air shopping center from its portfolio. The company has entered into a firm agreement to sell the property at an approximate capitalization rate of 8%. A capitalization rate, often referred to as a “cap rate,” is commonly used in real estate investment to measure the expected return on an income-producing property.
The pending sale is expected to generate net proceeds of approximately $25 million for CBL after the repayment of existing debt tied to the asset. The transaction is anticipated to close in April, pending the completion of customary closing conditions and final approvals.
Together, the two transactions represent a strategic example of capital recycling, a financial strategy in which companies sell certain assets to free up capital that can be reinvested in higher-yielding opportunities. In this case, CBL is using proceeds from the sale of a stabilized open-air retail property to support investments in enclosed shopping malls that the company believes offer stronger long-term growth and cash flow potential.
Stephen D. Lebovitz, Chief Executive Officer of CBL Properties, emphasized that the acquisition of Gateway Mall aligns closely with the company’s long-term investment strategy. He described the property as a strong-performing retail center located in a vibrant and expanding market.
According to Lebovitz, the purchase price for Gateway Mall represents attractive value and provides the company with an opportunity to apply its operational expertise to enhance the property’s performance over time. CBL has developed a reputation for managing and revitalizing enclosed malls, often improving tenant mix, customer experience, and overall property performance.
Lebovitz also noted that the company continues to focus on identifying high-yield opportunities within the enclosed mall sector. By carefully selecting properties that have strong market positions and growth potential, CBL aims to generate sustainable returns while strengthening the long-term resilience of its retail portfolio.
The sale of the open-air retail center also reflects CBL’s disciplined approach to capital management. Lebovitz explained that the company regularly evaluates its portfolio to identify assets that may have reached a stabilized stage of performance. In some cases, selling these properties at attractive valuations can provide capital that can be redeployed into investments with greater potential for income growth.
This process allows CBL to continually refine its portfolio and concentrate its resources on properties that align most closely with its strategic objectives. By balancing acquisitions and divestitures, the company seeks to enhance overall cash flow while maintaining financial flexibility.
Lebovitz added that Gateway Mall complements a series of acquisitions CBL completed in the previous year. In 2025, the company purchased four additional market-dominant malls, also from Washington Prime Group. The addition of Gateway Mall further strengthens CBL’s presence in regional retail markets and expands its footprint within the enclosed mall sector.
Beyond financial considerations, CBL plans to focus on enhancing the shopping experience at Gateway Mall for customers and retailers alike. The company intends to leverage its operational expertise to improve tenant relationships, strengthen retail offerings, and create an engaging destination for shoppers in Lincoln and the surrounding region.
By investing in upgrades, strategic leasing initiatives, and community-focused events, CBL aims to reinforce the mall’s position as a central retail hub within the local market. The company believes that well-managed enclosed malls continue to play an important role in regional retail ecosystems, offering a mix of shopping, dining, and entertainment experiences that cannot be replicated online.
Overall, the acquisition of Gateway Mall and the planned sale of the open-air retail center illustrate CBL Properties’ ongoing commitment to disciplined growth and strategic portfolio management. Through targeted acquisitions, thoughtful divestitures, and a focus on operational excellence, the company aims to enhance shareholder value while maintaining a strong presence in key retail markets across the United States.
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