Dreien Opportunity Partners Buys J. C. Penney Headquarters for $353M

J. C. Penney Co. sold its Plano, Texas headquarters building and surrounding 45 acres to Dreien Opportunity Partners LP, Dallas, for $353 million before closing and transaction costs on Dec. 30. 

J. C. Penney made the 1.8-million-square-foot Class A office campus its global headquarters in 1992. It will lease back 65 percent of the three-story building, leaving the remaining nearly 600,000 square feet available for new tenants. 

The Dallas Business Journal reported Beal Bank USA, Las Vegas, provided Dreien Opportunity Partners with a $388.7 million first mortgage. 

The retailer said its new building lease expense would be offset by lower maintenance costs, property taxes and interest expenses because it paid down debt with sale proceeds. 

“Proceeds from the sale give us the opportunity to reduce outstanding debt and make improvements to our workspace, creating a modern and efficient environment that fosters productivity and seamless collaboration,” said J. C. Penney Chairman and CEO Marvin Ellison.

CBRE Capital Markets represented J. C. Penney in the transaction; an Avison Young team led by John Bralower, Justin Piasecki, Peter Steier and Ethan Blum represented Dreien Opportunity Partners.

The property is adjacent to the $3 billion Legacy West development just west of the Dallas North Tollway. Major new developments nearby include Toyota’s North American headquarters as well as new office campuses for JPMorgan Chase and Liberty Mutual Insurance.