PLANO, TEXAS — J.C. Penney (NYSE: JCP) has sold its home office campus and 45 surrounding acres of land in Plano to Dreien Opportunity Partners for $353 million. The 1.8 million-square-foot asset is known as Campus at Legacy West.
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.
“Since we began exploring the sale of our home office, we have been quite pleased by the level of interest in the building,” says Marvin Ellison, J.C. Penney’s chairman and CEO. “This transaction also represents a significant financial milestone for the company, as proceeds from the sale give us the opportunity to reduce outstanding debt and make improvements to our workspace, creating a modern and efficient environment.”
Eight office wings that span 56.8 acres flank the three-story office building. The Class A campus is situated near the intersection of Dallas North Tollway and State Highway 121 within the Legacy Business Park.
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.
Dreien Opportunity Partners has retained Colliers International to market the remaining contiguous space, which totals more than 680,000 square feet. CBRE’s John Alvarado, Russell Ingrum, Gary Carr, Eric Mackey, Robert Hill, Jeff Ellerman, Chelby Sanders and Josh White represented J.C. Penney in this transaction.
JCP stock closed at $8.33 per share on Tuesday, Jan. 3, up from $6.97 one year ago.
— Nellie Day and Amy Works