- Onyx Partners has submitted a $934M offer for a 117-store J.C. Penney portfolio covering 15.7M SF across 35 states.
- A prior deal between Onyx and the Copper Property trust failed, leading to litigation after the trust claimed the deadline was missed.
- This portfolio sale could gauge the appetite for legacy retail real estate, but will not disrupt J.C. Penney’s store operations due to long-term leases.
A Second Attempt at a Landmark Retail Deal
Onyx Partners is pursuing a national J.C. Penney portfolio again. The firm has offered $934M for 117 stores nationwide, according to CoStar News. If completed, the deal would rank among the largest retail property trades in recent years.
Onyx returned after its $947M bid failed in December. The trust rejected that offer over missed deadlines, triggering litigation. Now, Onyx says it has secured financing and targets a September closing. Copper Property CTL Pass Through Trust has not responded.
The proposed sale also reflects investor interest in legacy retail assets. The portfolio carries long-term J.C. Penney leases. It is managed by a post-bankruptcy trust, highlighting how retailers continue monetizing real estate after restructuring.
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The Details
The portfolio includes 117 properties totaling 15.7M SF across 35 states. J.C. Penney leases every property under long-term agreements. Copper Property CTL Pass Through Trust manages the portfolio after the retailer’s Chapter 11 filing.
The $934M offer is slightly below Onyx’s previous bid. The earlier deal collapsed over disputed deadlines and led to court proceedings. Onyx’s new letter of intent says financing is complete. It targets a September 15 closing.
Hilco Real Estate and Newmark represent the trust. Neither firm has commented. No new SEC filing had appeared by early August.
Retail Liquidation Trusts and a Fragile Recovery
Copper Property follows a strategy many department store owners now use. They separate real estate from operations to repay creditors and maximize value.
The trust announced a deal with Onyx in July 2025. It canceled the agreement five months later, claiming Onyx missed its deadline. Litigation remains unresolved. That failed transaction continues to shape negotiations, as both sides seek greater closing certainty this time.
If the new offer succeeds, it would mark a rare large portfolio sale tied to a legacy retailer. Catalyst Brands says store operations will continue regardless of ownership. The structure protects J.C. Penney’s business while separating property ownership from operations.
Why It Matters
This transaction stands out for its size and market implications. The portfolio spans more than 15M SF and carries a nearly $1B price tag. It ranks among the last major single-tenant portfolios from the pandemic-era retail bankruptcies.
CoStar says portfolio sales of this scale have become increasingly rare. Investors have grown more cautious about large big-box retail assets.
The long-term lease structure limits disruption for J.C. Penney’s operations. Catalyst Brands says stores will continue operating as usual. The sale could establish a pricing benchmark for aging anchor portfolios. It also highlights the value buyers place on closing certainty. The litigation shows how difficult large trust-managed transactions can become.
What’s Next
Onyx’s offer has passed its stated expiration date. Still, negotiations could continue if the trust reopens discussions or delays a response.
Any deal will depend on trust governance, litigation, and Onyx’s ability to deliver financing on schedule. A September closing could revive interest in single-tenant retail portfolios. Still, many dealmakers view this as a unique transaction rather than a market shift.
Market participants will continue watching SEC filings and court proceedings for the next developments.
