Southgate Mall Changes Hands Again as Part of $443 Million Four-Mall Deal

MISSOULA — Southgate Mall has changed ownership again, this time as part of a $443 million financing deal that includes three other regional malls in Colorado, Florida, and Kentucky.

The Missoula mall was acquired by CBL Properties with financing from Dallas-based Beal Bank USA through its subsidiary CSG Investments. The mall was previously owned by Washington Prime Group, which acquired it from the longtime Lambros family ownership in 2018 for around $58 million.

The four-mall purchase also includes Mesa Mall in Grand Junction, Colorado; Paddock Mall in Ocala, Florida; and Ashland Town Center in Ashland, Kentucky — all enclosed regional malls.

CBL Properties, headquartered in Chattanooga, Tennessee, now manages a portfolio of 89 properties across 22 states, including 55 enclosed malls and outlet centers. The company describes its properties as “market-dominant.”

Despite industry-wide challenges facing enclosed malls, Southgate Mall maintains relatively strong occupancy with approximately 85-90 stores and four of its six anchor spaces filled, with one under construction.

The mall, located on Reserve Street, has navigated the changing retail landscape better than many of its peers. While enclosed malls nationwide have struggled with changing consumer habits and online shopping growth, Southgate has maintained its tenant base in Missoula’s relatively strong retail market.

Matt Hart, managing director for CSG Investments, said the deal reflects the company’s commitment to commercial real estate. “On behalf of our broader team at Beal Bank, we are delighted to have this opportunity to expand and extend our support for CBL and their growing portfolio of market-dominant retail properties,” Hart said.

CBL Properties says it focuses on “active management, aggressive leasing and profitable reinvestment” in its properties. The approach may help maintain Southgate Mall’s current performance in a challenging retail environment.

The $443 million represents an increase of $110 million in funding from Beal Bank USA, bringing the total financing package to support CBL Properties’ mall acquisitions and operations.

For Missoula shoppers, the ownership change represents another chapter in the mall’s ongoing story of adaptation in a challenging retail environment.