- Onyx Partners is buying 119 J.C. Penney stores for $947M in cash from Copper Property CTL Pass Through Trust, created after J.C. Penney’s 2020 bankruptcy.
- The portfolio spans 15.86M SF across 34 states and is fully leased to J.C. Penney under long-term triple-net leases.
- The sale is expected to close by Sept. 8 and will generate approximately $100M in first-year net revenue from existing leases.
A Pandemic-Era Real Estate Legacy Nears Closure
Five years after J.C. Penney entered Chapter 11 bankruptcy protection, the retail legacy continues to play out in the real estate market, reports CoStar. Copper Property CTL Pass Through Trust is a post-bankruptcy vehicle formed to monetize J.C. Penney’s assets. The trust has agreed to sell a major portion of its remaining portfolio—119 stores—to Boston-based Onyx Partners.
Cash, Certainty, And Long-Term Leases
The all-cash $947M transaction comes after a months-long marketing effort led by brokerage Newmark. According to Copper Property, Onyx has completed its due diligence, and its deposit is now non-refundable. The properties, totaling nearly 16M SF, are net-leased to J.C. Penney under a long-term master lease—meaning the retailer covers property expenses, taxes, and maintenance.
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Big Boxes, Broad Footprint
The stores average 132K SF and are spread across 34 states, with each site sitting on roughly 8.4 acres. The leaseback structure will generate an estimated $100M in net operating income during the first year. That strong return makes the acquisition a compelling, yield-focused investment for Onyx.
From Bankruptcy To Brookfield
J.C. Penney was one of several major chains to file for bankruptcy amid the COVID-19 pandemic. Mall giants Simon Property Group and Brookfield rescued J.C. Penney’s retail operations in 2020. Meanwhile, its real estate was carved out into a trust to repay creditors. Over time, Copper Property has liquidated many assets in pieces, but this marks the largest single transaction to date.
Retail Real Estate Still In Play
Brick-and-mortar retail has faced long-running headwinds. Despite this, demand for net-leased retail portfolios remains strong. These assets are especially attractive when backed by national credit tenants. For Onyx Partners, the deal aligns with its strategy of targeting diverse, income-producing real estate with mitigated downside.
What’s Next
With the closing expected by September 8, Copper Property plans to distribute the sale proceeds to creditors. The transaction also signals ongoing investor confidence in stabilized retail portfolios—especially those with high-credit tenants and predictable income streams.
