J.C. Penney has completed the sale of its home office and surrounding 45 acres in Plano, TX, for a gross sale price of $353 million.
The company previously announced that upon the transfer of ownership, J.C. Penney would lease back approximately 65% of the building, leaving the remaining square footage 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, company officials said.
“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,” said Marvin Ellison, chairman and chief executive officer for J.C. Penney.
Prominently located near the intersection of Dallas North Tollway and State Highway 121, J.C. Penney has occupied the three-story 1.8 million-square-foot office building as its global headquarters since 1992.