J.C. Penney Explores Potential Sale, Partial Leaseback Of Texas Headquarters

(RTTNews) - J.C. Penney Co. Inc. (JCP) said Friday it is pursuing the potential sale and partial leaseback of its headquarters building in Plano, Texas as part of efforts to reduce outstanding debt and effectively manage expenses.

The department store chain noted that a combination of favorable market conditions and a surplus of available square footage within the building make this an attractive real estate opportunity for the company.

J.C. Penney has occupied the three-story office building as its global headquarters since its completion in 1992. The building is situated on a 64-acre site near the intersection of Dallas North Tollway and State Highway 121.

"With the tremendous growth and development currently taking place within Plano and North Texas, there's no better time to take advantage of this lucrative market by pursuing a sale of our Home Office real estate," said Marvin Ellison, chief executive officer for J.C. Penney.

J.C. Penney expects the cost of leasing space within the building 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.

The new owner will have the opportunity to market over 650,000 square feet of contiguous space within the coveted Legacy West submarket, according to J.C Penney.

The company has selected CBRE Capital Markets to market the 1.8 million-square-foot, Class A office campus located in Legacy Business Park in Plano, Texas.