JC Penny sells headquarters for $353 million

J. C. Penney completed sale of its home office building and surrounding 45 acres of land in Plano, Texas to Dreien Opportunity Partners, LLC, general partner of Silos Opportunity Partners, LP, for a gross sale price of $353 million before closing and transaction costs.

Why is J.C. Penney doing this?

Essentially, it’s a way to free up some cash in the short term while lessening expenses over the long term.

J.C. Penney plans to lease back approximately 65 percent, or 1.1 million square feet, of the campus, with the remaining space available for new tenants. The building lease expense would be offset by a reduction in maintenance costs, property taxes and interest expense as a result of paying down debt with proceeds from the transaction, according to the apparel and home furnishings retailer.

J.C. Penney has occupied the campus since it was built in 1992. The property features two cafeterias, a fitness center, on-site retail, childcare center, healthcare facility and two adjacent parking garages.

Marvin Ellison is J.C. Penney’s chairman and CEO.

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