"Onyx Partners Acquires 119 JCPenney Stores Sale for $947 Million in Strategic Deal"

A Boston-based private equity firm, Onyx Partners, Ltd., has reached a binding agreement to acquire a portfolio of 119 JCPenney stores for $947 million. This transaction is expected to close on September 8, and involves an all-cash payment for net-lease properties that are currently operational across 35 states.

The sale marks a significant development nearly five years after JCPenney filed for Chapter 11 bankruptcy protection. Copper Property CTL Pass Through Trust, a holding entity created by JCPenney's lenders during the retailer's reorganization process, announced the sale. The transaction aims to distribute proceeds to JCPenney's creditors, with Copper Property Trust estimating that approximately $928 million to $932 million will be disbursed after accounting for closing costs.

Among the properties included in the sale are six Michigan locations: Oakland Mall in Troy, Lakeside Mall in Sterling Heights, Twelve Oaks Mall in Novi, Grand Traverse Mall in Traverse City, Rivertown Crossings in Grandville, and Waterside Marketplace in Chesterfield Township. The Michigan stores are part of an expansive portfolio spread across 35 states, with Texas and California together hosting the majority of the stores. The stores will continue to remain operational, according to reports.

The sale does not signify immediate closures for the JCPenney stores involved. The net-lease agreement guarantees rent and operating expenses coverage, facilitating a stable revenue stream for JCPenney Intermediate Holdings and its affiliates as lessors. Following its bankruptcy proceedings, JCPenney closed over 200 stores but still operates approximately 650 locations, suggesting that the brand retains a substantial physical presence nationwide.

Copper Property actively sought buyers for these properties in collaboration with property management firm Newmark and Hilco Real Estate. Newmark's marketing materials highlighted the size and strategic importance of the portfolio, which comprises about 16 million square feet of retail space, and initially included 121 properties prior to the finalization of the sale agreement.

The sale is also notable for the inclusion of other state locations, such as three properties in Oklahoma, situated at Penn Square Mall in Oklahoma City, Shops at Moore, and Center at Owasso. Additionally, the portfolio includes locations like Hamilton Town Center in Noblesville, Indiana, and multiple properties throughout Texas and California. The transaction remains consistent with Copper Property's broader liquidation strategy following JCPenney's restructuring, underscoring investor confidence in these assets.

Details of the strategic considerations behind the acquisition indicate a thorough vetting process by Copper Property Trust. Neil Aaronson, principal executive officer of the trust, emphasized the multifaceted evaluation that led to selecting Onyx Partners, reflecting their capability in terms of financing, acquisition execution, and the overall rationale behind purchasing the properties.

The move represents a noteworthy moment within the commercial real estate market, as brick-and-mortar retail continues to carve out roles within evolving consumer landscapes. While digital commerce grows, traditional retailers like JCPenney remain crucial for omnichannel strategies, prompting strategic acquisitions by investors identifying value in these assets. Analysts predict that such transactions could unlock new revenue streams and position properties for adaptive reuse, although specific repositioning plans by Onyx Partners have yet to be disclosed.

Overall, the acquisition signals a symbolic shift in JCPenney's trajectory post-bankruptcy, securing operational continuity and creditor reimbursement, while setting a foundational stage for potential future repositioning and strategic opportunities across its remaining store footprint.