According to CoStar, a rare opportunity is arising for institutional investors as a retail portfolio of 120 JCPenney stores across the United States could potentially be sold for over $1 billion. The portfolio, totaling 15.86 million square feet and spanning 34 states, will be listed by Newmark on behalf of Copper Property CTL Pass Through Trust in early next month. This trust was formed after JCPenney’s bankruptcy proceedings in 2020 and aims to sell off assets to reimburse investors.
The trust has already completed sales of 37 stores and six warehouses but still has the remaining portfolio up for grabs. These long-term leased properties are all occupied by JCPenney with an average store size of approximately132,000 square feet on an average tract size of8.36 acres.
Newmark managing director Paul Penman stated that they plan to market this offering globally but expect domestic capital familiar with JCPenney due to its presence in various states rather than just gateway markets where it may attract more international attention.
