J.C. Penney on Friday said it is pursuing the potential sale and partial leaseback of its home office building in Plano, TX, as part of an ongoing effort to reduce outstanding debt and effectively manage expenses.
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, officials said.
“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, CEO, J.C. Penney. “Even as we continue to deliver positive financial results across all aspects of our business, including delivering year over year gross margin increase in the fourth quarter, this presents an ideal opportunity to reduce outstanding debt and create long-term savings for the company.”
Company officials said they expect that 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. CBRE Capital Markets has been selected to market the 1.8 million-square-foot, Class A office campus located in Legacy Business Park in Plano, Texas.
J.C. Penney has occupied the three-story office building as its global headquarters since its completion in 1992. Situated on a 64-acre site near the intersection of Dallas North Tollway and State Highway 121, the Legacy corridor is home to corporate and regional headquarters for numerous Fortune 500 companies.