Onyx Partners Acquires 119 JCPenney Stores for $947 Million in Strategic Real Estate Deal

About five years after JCPenney entered bankruptcy, a substantial transaction has been initiated that sees 119 of its store locations being sold to a Boston-based private equity firm. Onyx Partners Ltd. has agreed to purchase these sites for $947 million, in an all-cash arrangement that is set to finalize by September 8. This acquisition was announced by the Copper Property CTL Pass Through Trust, which was established during JCPenney's reorganization post-bankruptcy to aid its creditors. Following this transaction, between $928 million and $932 million, after closing costs, will be disbursed to the creditors of JCPenney.

Copper Property Trust, which gained control of approximately 160 stores and six distribution centers upon JCPenney's bankruptcy, has been endeavoring to find buyers for several of these locations. Newmark and Hilco Real Estate, the property management companies dealing with the sale, had been marketing the real estate portfolio consisting of 121 properties across 35 states, promising significant retail space. While most locations are situated in heavily populated areas like Texas and California, individual sites were also impactful—such as the highest performing stores in the Bronx, Glendale, and Bakersfield.

JCPenney had closed over 200 stores between its bankruptcy filing in 2020, attributed largely to pressures from the COVID-19 pandemic, and subsequent recovery phases. However, all 119 stores marked for this sale are still operational and will continue as such through the transaction. The future of these locations beyond the closing date remains cautiously optimistic yet undefined, with Onyx Partners yet to confirm any change in operational plans.

This significant sale does not affect JCPenney's store operations, despite changing landlords. The department store chain, one of several retailers who have marked their struggle through bankruptcy, now operates around 650 sites nationally and hopes to retain its customer base in its current locations. Alongside the sale announcement, seven earlier closures in May 2025 were finalized, signifying restructuring efforts that continue to shape the company's future.

In particular, the sale implicates numerous high-profile locations in states like Michigan, Arizona, and New York. Michigan, for instance, will be affected by the sale of six notable stores at prominent establishments such as Oakland Mall in Troy and Twelve Oaks Mall in Novi. Similarly, Arizona's well-situated retail spaces like the Arrowhead Towne Center and Superstition Springs Mall will now see new ownership.

JCPenney, after surviving bankruptcy proceedings, is aligning itself with new stakeholder interests under Simon Property Group and Brookfield Asset Management, who acquired many operations in a previous $1.75 billion agreement. The sale is not expected to halt JCPenney's activity in its existing stores but instead modifies its real estate strategy amid evolving market conditions. Analysts predict that such strategic buyouts signify a broader reorganization within large retail chains coping with shifts in retail dynamics and economic pressures.

As the September closing date approaches, the sector watches keenly, reflecting on JCPenney's transformative measures within its strategic real estate decisions. An enduring challenge remains for large retailers to adapt swiftly to changing economic landscapes while securing fiscal stability through assets and operational preservation.