Just last week JCPenney announced plans to sell its expansive headquarters campus located in Plano, Tex., for $450 million, and the retailer already has a buyer solidified for the sale.
According to a press release, the capital markets team from commercial real estate services firm Avison Young is advising a Dallas investor in the acquisition and repositioning of the headquarters.
Silos Opportunity Partners is named as the company that will finance the $450 million purchase of the 1.8 million-square-foot home office campus, which includes the home office building surrounded by 45 acres of land.
“We’re tremendously proud of our work in furnishing strategic acquisition advice, arranging the capital for this transaction and providing successful support and solutions for our client’s grand vision for this campus,” said John Bralower, principal and managing director of U.S. Capital Markets for Avison Young.
“The capital stack we assembled will enable our client to effectively execute plans to revitalize the core asset while creatively unlocking tremendous additional value,” Bralower continued.
When JCPenney initially made the announcement about the sale, it said that upon the transfer of ownership, it planned to lease back nearly 65 percent of the building and leave the rest available for new tenants. According to the company, the lease expenses will be offset by lower maintenance costs, property taxes and interest expenses from paying down its debt with money earned from the transaction.
“Since we began exploring the sale of our home office, we have been quite pleased by the level of interest in the building. Our team reviewed numerous offers and decided that it was most advantageous to select Dreien Opportunity Partners, whose leadership recognizes the building’s long-term potential and has demonstrated tremendous support of the company as we maintain our home office operations within the booming Legacy corridor,” Marvin R. Ellison, chairman and CEO for JCPenney, said in a statement last week.
“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 that fosters productivity and seamless collaboration,” Ellison added.