by In a significant deal in the retail real estate space, a 119 JCPenney store portfolio changed hands for $947 million to an affiliate of Boston-based private equity firm Onyx Partners, Ltd. The sale of these JCPenney stores for an all-cash purchase was announced on July 25, 2025 by Copper Property CTL Pass Through Trust and represents a major milestone for the department store chain as it continues to emerge from bankruptcy proceedings following a series of restructurings in 2020. The purchase also includes stores in 35 states, including significant concentrations in Texas, California and Puerto Rico, and the deal is set to close on Sept. 8, 2025. This article goes deep on the JCPenney stores sale – what it means for the retailer and for its creditors and what it bodes for the future of JCPenney as a retail concept.
JCPenney Stores Sale Read the full JCP press release about the sale here: An important message to our JCPenney customers and communities serving our customers In a majority of our stores, we will accept additional customer orders until May 16.
The JCPenney stores sales includes 119 active stores, part of a larger portfolio that was originally marketed as 121 buildings totaling 16.05M SF. The deal, completed with the help of Newmark and Hilco Real Estate, follows a wide marketing push to sell the properties of the Copper Property CTL Pass-Through Trust. That trust was created in 2020 to handle sales of JCPenney’s real estate in order to pay off creditors after that retailer filed for Chapter 11 bankruptcy protection in the midst of the COVID-19 pandemic. JCPenney’s creditors will be paid with the $947 million sale ($928 million to $932 million after closing costs), Larry Finger, principal financial officer, said in a July 28 conference call.
The portfolio ranges across 35 states, including 21 stores in Texas, 19 in California and two in Puerto Rico. The properties are leased under long-term triple-net master leases with Penney Intermediate Holdings LLC, so JCPenney will continue to operate the stores and will pay rent and operating costs to the new owner. Two properties, one in Florida and another in Pennsylvania, were not included in the sale and were sold in early 2025 to the Simon and Brookfield group for $21 million, bringing down the store count from 121 to 119.
Onyx Partners, the buyer, did not return requests for comment, though its website brags that the firm has completed over $2 billion in private transactions across 47 states. The non-refundable deposit and completed due diligence demonstrate the deal’s certainty and represent a major milestone in JCPenney post-bankruptcy life.
Context of JCPenney’s Restructuring Journey
The sale of JCPenney stores is the result of the company declaring Chapter 11 bankruptcy in 2020 and closing more than 200 stores as part of a restructuring. JCPenney, which at the time was also operating roughly 850 stores, is exiting bankruptcy with about 650, owned by mall titans Simon Property Group and Brookfield Property Partners, which purchased the company for about $800 million. The acquisition brought the total JCPenney debt to just under $500 million, compared to the nearly $5 billion it had before.
JCPenney has been on a turnaround mission ever since. In 2023, the C.E.O. Marc Rosen announced a $1 billion investment that would remodel stores, improve online shopping and simplify the supply chain. The “Make It Count” campaign spurred an 11% bump in average customer sales and significant growth in digital, store and customer engagement even as net sales inched down 10.7% to $1.5 billion in Q3 2023. The firm has refreshed 100 shops, and has laid out a programme to revitalise 50 — 100 of them each year, complete with shiny new features such as centralised checkouts, brighter lighting and better Wi-Fi.
However, challenges persist. There were seven JCPenney stores to close in May 2025, due to expiring leases and changes in the market; among the states impacted were California and Colorado, as well as Maryland. A deal to merge with SPARC Group, the parent of the Aéropostale and Brooks Brothers brands, was announced in January 2025, creating Catalyst Brands to fortify JCPenney’s market standing. Both the closings and the merger are unrelated to the sale of the JCPenney stores, which is a play on real estate, not retail.
Why The Sale of JCPenney Stores Matters
The JCPenney stores sale is significant for a few reasons. First, it’s a strategic sale of real estate property that will go towards the creditors following the 2020 bankruptcy. Copper Property CTL Pass Through Trust was specifically established to sell off the 160 store locations and six distribution centers of J.C. Penney, and the sale of 119 stores puts a significant dent in that group. Prior sales involved selling 37 stores for $497 million, or an average of $62 per square foot, and the $947 million valuation on the current deal testifies to strong investor demand for retail real estate, especially for stable, operating stores.
Second, the JCPenney stores sale highlights how strong JCPenney’s retail operations actually is. All 119 stores continue to operate, and long-term leases mean continuity for both customers and employees. This stability is important as they are some of JCPenney’s top performers, producing $100 million in annual rent with 2% annual rent escalations. The triple-net-lease structure passes along maintenance, taxes and insurance costs to JCPenney, which makes the properties appealing to investors such as Onyx Partners.
Third, the sale illustrates real estate markets changing around retail. Retail vacancy rates are low and development is scarce, just as institutional investors are looking more for stability — and they are finding it in JCPenney’s collection. The $947 million price, which included the assumption of $900 million in debt, marked a relatively lower sum than the $1.3 billion first calculated for 120 stores, and the bidders face a tough market — but also a healthy portfolio that comes to about $59 a square foot for 16 million square feet on average.
A selective list of the most noteworthy locations in the JCPenney Stores sales.
The sale of the JCPenney stores represents mainly big-box stores that are located in or near a mall, and have a significant presence in high-traffic centers across the U.S. Texas is home to a whopping 21 stores, and California is close behind with 19. Some of these are the 124,000-square-foot store at Gateway Center in Brooklyn, N.Y., and the 185,000-square-foot store at Newport Centre in Jersey City, N.J. And in Albuquerque, New Mexico, The Coronado Center and Cottonwood Mall both have JCPenneys at the properties. The Phoenix market is three stores deep in Mesa, Glendale and Goodyear, which make up about half of all of JCPenney’s Arizona locations. Also in play are two stores in Puerto Rico, expanding the geographic reach.
Although a full list of all 119 properties was not published in public sources, the extensive portfolio spread across 35 states emphasizes the offering’s attractiveness to prospective investors looking for a nationwide presence. For a complete list, readers should see announcements by outlets such as USA TODAY or CoStar, which have reported the sale in depth.
Public and Industry Reactions
Sale of JCPenney stores has highlighted its effect on the retail and real estate market. X Posts on X underscore the scale of the deal, and comments like @DavidDTawil’s references to a “Retail Apocalypse,” but acknowledging the $947 million transaction as a big deal. Publications like USA TODAY, Yahoo Finance and Bisnow underscored the significance of sale, writing that it represents both a part of JCPenney’s recovery from bankruptcy and the larger habit among investors of wanting to gobble up retail properties.
Industry analysts see the sale as one that will serve as a benchmark for future retail transactions because of the sheer size of the portfolio and the high-profile firms involved, including Newmark. The success of the deal, which was less than the projected $1.3 billion, is seen as a vote of confidence in JCPenney’s continuing operations and in the value of its real estate. But some analysts, including Bryan Gildenberg of Confluencer Commerce, warn that JCPenney’s bigger turnaround inkling, the $1 billion it is spending to renovate, might be playing catch-up with rivals like Macy’s and Walmart, which have been moving forward with their store and online improvements.
Implications for JCPenney’s Future
The JCPenney stores sale is not a pullback from retail; it’s part of a pivot to maximize its real estate holdings. Selling some of these stores will allow JCPenney to focus on its core business and meet some of its obligations to credit holders. The long-term leases will keep 119 stores open, maintain jobs for workers and offer access for its customers. That falls in line with CEO Marc Rosen’s focus on middle-income shoppers, including efforts to bring brands like Adidas and Forever 21 back to stores, upgraded beauty offerings for more skin tones and improved inventory management with AI technology.
The sale also puts JCPenney in a position to navigate a tough retail environment. However, despite an overall 5.9% decline in net sales to $2.3 billion and an 8.9% drop in net income to $41 million in the latest quarter, the company’s “Make It Count” strategy has generated some early results, such as a 5% increase in customer frequency, and 25% of beauty department customers being new. The combination with SPARC Group bolsters JCPenney’s brand stable, which could improve its competitive position.
The JCPenney stores sale is precedent-setting for the real estate market in large-scale retail portfolio transactions. With retail vacancies low and demand for stable assets on the rise, more such deals could be on the way, especially for department stores adjusting to post-pandemic consumer preferences. The presence of Onyx Partners, a private transactions specialist, highlights how such portfolios have proved tempting to institutional investors.
Challenges and Opportunities Ahead
The JCPenney stores sale is a financial victory for creditors, though it follows continued problems for the company. The decision to shutter seven stores in May, and four others in 2024, is part of the retailer’s need to adjust to the changing retail landscape and expiring leases. Department store retailers have been under economic duress, as consumers have cut back on discretionary spending and JCPenney’s fiscal year ended in January with net sales falling 3.4% to $7.6 billion.
However, opportunities abound. The $1 billion investment in store renovations, technology and supply chain will go toward improving customer experience and keeping pace with rivals. The Wayne, New Jersey store opened in 2024 and is a testament to JCPenney’s modernization journey, with movable fixtures and state-of-the-art point-of-sale systems. In-store, community involvement — like the $11,250 donation to the Boys & Girls Club of Wayne — adds to JCPenney’s brand advocacy.
Conclusion
Bloomberg The sale of 119 JCPenney stores for $947 million to Onyx Partners is a power moment of the retailer’s post-bankruptcy era. Through the sale of these assets, JCPenney is able to satisfy creditor claims while preserving operating items in the form of long-term leases. Extending across 35 states and key markets, including Texas and California, the deal demonstrates robust investor confidence in retail real estate. JCPenney under CEO Marc Rosen is reusing their $1 billion “Make It Count” strategy to turn around the department store chain, targeting middle-income shoppers and updating its stores and online presence. As the retail industry changes, the JCPenney stores sale is not just a financial turning point, but also a chance for the retailer to turn the page. For the most recent updates and a complete list of locations, consult trusted sources such as USA TODAY or CoStar.
