South Mississippi's Largest Mall Sells: What You Need to Know

A New Chapter for The Promenade in D'Iberville

The Promenade in D'Iberville, the largest shopping center in South Mississippi, has undergone a significant change as it is now under new ownership. CBL Properties, a real estate company based in Chattanooga, Tennessee, announced that it has sold the property for $83.1 million. However, details about the buyer remain undisclosed, and there are no signs of a new website or social media presence for the shopping center.

The sale was completed at an attractive 8.5% cap rate, which highlights the value of CBL's open-air portfolio. This transaction underscores the strength of the company's properties across 20 states, including malls, outlet centers, and open-air centers.

The Promenade's Impact on D'Iberville

Since its opening in 2009, The Promenade has played a pivotal role in transforming D'Iberville into a retail powerhouse. It brought much-needed stores and services to the area following the devastation caused by Hurricane Katrina. The shopping center was anchored by the first Target store in South Mississippi, along with other major retailers such as Dick's Sporting Goods, Kohl's, Best Buy, PetSmart, and Old Navy. It also features popular dining spots like Buffalo Wild Wings and Olive Garden.

The Promenade has been a catalyst for growth in the city, leading to increased traffic, new roads, car dealerships, and additional development. It is now ranked third in sales tax revenue in South Mississippi, behind Gulfport and Biloxi. The project was developed on 72 acres northwest of the Interstate 10 and 110 intersection, with plans to create 1,000 jobs and generate over $185 million in annual retail sales.

Infrastructure Challenges and Solutions

As The Promenade grew in popularity, so did the traffic. To accommodate the increasing demand, developers and the city of D'Iberville constructed a five-lane road connecting the shopping center to Sangani Boulevard. However, traffic quickly outpaced the infrastructure, leading to congestion on weekends and holidays.

To address these issues, D'Iberville allocated more than $18 million in tax increment financing (TIF) bonds to support infrastructure improvements, including The Promenade Parkway. The Mississippi Department of Transportation invested around $120 million to add new exits and entrance ramps from the interstates, while the city was asked to contribute $30 million for road improvements.

Traffic congestion eased after the completion of a "fly-over" bridge in 2013 and a diverging diamond intersection in 2015, which provided an additional entrance to the shopping center.

Success and Challenges

Despite the economic downturn in 2009, The Promenade experienced strong sales from its opening. The first Black Friday at the Kohl's store saw long lines, with customers camping overnight at Best Buy and Target. However, the shopping center faced challenges later on, including cracks in store floors and parking lot surfaces.

CBL Properties declined to comment on the issue, but D'Iberville City Manager Michael Janus stated that the company has been transparent with city officials. He clarified that the shopping center is not sinking but rather "heaving" due to soil issues caused by fill material from a Louisiana company. Lawsuits were filed to address the damages.

Construction continued on the east side of The Promenade, adding new tenants such as Ashley Home Furniture and Burlington. Vacant spaces were quickly filled, maintaining nearly full occupancy throughout the years.

Ongoing Development and Future Prospects

The Promenade remains a vital part of the D'Iberville community, serving as a retail hub and service district. With the recent sale, the future of the shopping center is uncertain, but there are indications that new tenants may be secured for the former Red Lobster restaurant. The city's planning and development department has received interest from national restaurant chains, suggesting potential changes ahead.

As the shopping center moves forward under new ownership, it continues to play a crucial role in the economic landscape of South Mississippi.