CBL & Associates Properties Inc. (CBL Quick QuoteCBL - Free Report) has announced the closing of a non-recourse loan of $73 million. This marks the Chattanooga, TN-based retail real estate investment trust’s (“REIT”) ability to secure finance on a continuous basis.

Notably, in case of both recourse and non-recourse loans, the lender has the power to possess and sell the underlying property, if the borrower defaults. If the borrower defaults and the lender is not able to sell the property for at least the amount that the borrower owes, then the latter has the right to seize other assets of the former for recourse loan. However, for non-recourse loan, the lender has to bear the deficit amount.

The non-recourse loan, which is for a duration of 10 years, is secured by Fremaux Town Center in Slidell, LA and has a rate of interest of 3.7%. This replaces the floating rate construction loans with this attractively priced long-term fixed-rate loan and further adds to the balance sheet strength of CBL & Associates.

CBL & Associates is engaged in owning, developing, acquiring, leasing, managing, and operating regional shopping malls, open-air centers, community centers and office properties.

CBL&ASSOC PPTYS Price

CBL&ASSOC PPTYS Price | CBL&ASSOC PPTYS Quote

Zacks Rank & Other Stocks to Consider

The stock presently has a Zacks Rank #3 (Hold).

However, investors interested in the retail REIT sector can consider stocks like Retail Opportunity Investments Corp. (ROIC Quick QuoteROIC - Free Report) , Saul Centers Inc. (BFS Quick QuoteBFS - Free Report) and Urban Edge Properties (UE Quick QuoteUE - Free Report) . Each of these stocks carries a Zacks Rank #2 (Buy).

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