Done deal: Penney sells headquarters campus in leaseback deal

J.C. Penney continues to lower its debt load.



The retailed has sold its sprawling headquarters campus in Plano, Texas, to Dreien Opportunity Partners, general partner of Silos Opportunity Partners, for a gross sale price of $353 million before closing and transaction costs.



Under the terms of the deal, which includes the retailer’s 1.8 million-sq.-ft. home office building and surrounding 45 acres of land, Penney will lease back approximately 65% of the building, leaving the remaining square footage available for new tenants.



Penney CEO Marvin R. Ellison called the transaction “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."



Penney announced its intent to sell its campus last February. The property, located about 20 miles northeast of Dallas, has served as the retailer’s headquarters since 1992.