J.C. Penney looking at possible HQ sale and partial leaseback

NEW YORK (AP) — J.C. Penney is considering selling and partially leasing back its headquarters to help lower debt and create long-term savings.

The department store operator said Friday that it has a surplus of square footage available in the Plano office building, with favorable market conditions making it a good time for such a real estate transaction.

J.C. Penney Co. has been in the three-story building since 1992.

The company had a strong holiday season. A key sales metric rose 3.9 percent as shoppers picked up home goods and other gifts. Earlier this month it started selling refrigerators, washing machines and other appliances at some of its stores for the first time in more than 30 years.

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J.C. Penney shares edged up 8 cents to $7.44 in morning trading Friday. Its shares are down more than 4 percent over the past year.

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. The new owner will have the opportunity to market over 650,000 square feet of contiguous space within the coveted Legacy West submarket. In 2014, the company made a significant portion of fringe land around the headquarters available to a joint venture with a team of developers.

Located 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. – additional reporting by Robert Francis, FWB