Penney’s Plano Campus Sells for More Than $400 Million

J.C Penney has sold its Plano corporate headquarters to a Dallas-based investment group.The sale - one of the largest of the year in North Texas - was quietly completed in the final hours of 2016, Collin County deed records show.A partnership headed by investor Sam Ware's Drien Opportunity Partners paid about $400 million for the 1.8 million square-foot head office complex located just west of the Dallas North Tollway.And along with the Penney buildings, almost 40 acres of surrounding land were included in the deal.The property is surrounded on two sides by the $3 billion Legacy West development - the largest real estate project currently underway in North Texas.The new owners have said they plan to sell and develop the land surrounding Penney's offices and will renovate the sprawling 1980s headquarters complex.The retailer plans to consolidate its offices into about 600,000 square feet in the north end of the building.Penney's downsizing will leave more than 1 million square feet of office space that can be renovated and rented to other businesses.Ware said Monday that an announcement of the purchase was pending.The big retailer in February announced that it would sell its more than 20-year-old headquarters.Penney hired commercial real estate firm CBRE to find a buyer for the property.After receiving multiple bids for the property, Penney chose Ware's group as the buyer.The purchase was financed in part with a $388.7 million mortgage from Beal Bank, the firm owned by Dallas billionaire Andy Beal.A second $50 million note and cash were also listed in the terms of the purchase.The Penney headquarters couldn't be better located. The campus is just across the street from where Toyota is building is new North American headquarters. And JPMorgan Chase and Liberty Mutual Insurance are building huge new regional office centers next door.The $400 million Legacy West Urban Village is just east of the Penney said and will open this spring with shops, restaurants, office space and apartments.  Continue reading...