Dallas-based developer Centurion American has supplied to pay J.C. Penney $15 million in money for its 10.66 acres and retailer on the former Collin Creek Mall in Plano, in line with a brand new courtroom submitting.
Penney stated final week that it not plans to be a part of the $1 billion redevelopment of the previous Nineteen Eighties procuring heart being transformed right into a mixed-use growth.
Penney, which is reorganizing in chapter, is required to ask the courtroom to approve a non-public sale of the Plano retailer versus holding an public sale. Penney stated in a courtroom submitting on Friday that its lenders are on board with the sale. Its actual property advisers, B. Riley Actual Property and Cushman & Wakefield, concluded {that a} sale to Centurion would yield the very best value and was probably the most environment friendly approach to deal with the property.
Cushman and B. Riley stated in a report that the acquisition value for the one Plano retailer is increased than the $10 million that the previous Sears area at Collin Creek fetched. Property inside 3 miles of the previous Plano mall bought for lower than $1 million per acre, in line with the actual property consultants.
The Penney value is about $1.4 million per acre.
Different shops will probably be auctioned throughout a listening to in mid-September. Penney, which entered chapter with 846 shops, has put up on the market 142 unexpired retailer leases and 24 shops that it owns. Penney has stated the leased shops are all closing. The properties which can be on the market might not all shut.
Whereas shops have misplaced market share over the previous couple of many years, they grew throughout many years when retail chains owned as an alternative of leased their shops.
Penney has bought off a whole lot of thousands and thousands of {dollars} of actual property prior to now a number of years, together with its Plano headquarters and surrounding land that turned Legacy West.
Its remaining shops and distribution facilities are being carved out and put into an actual property funding belief separate from the working firm as a part of the corporate’s reorganization plan.
The Penney chain hasn’t discovered a purchaser but, but it surely seems to be shut. Final week, Penney’s chapter courtroom choose ordered the case’s attorneys to a standing listening to on the sale of the retailer, however these discussions had been sealed.
Centurion has began redeveloping the property simply west of North Central Expressway alongside fifteenth Avenue and Alma Drive. Its plan embrace residences and places of work. Initially, Penney was going to be a part of that challenge and would transfer into a brand new retailer that Centurion was constructing as a part of a smaller retail and restaurant space.
The previous Dillard’s, Macy’s, Mervyn’s and Sears shops that had anchored the 1.1-million-square-foot mall inbuilt 1981 have already been demolished. Penney, which stayed open to be a part of the brand new challenge, stated it would begin its closing sale at that retailer on Labor Day weekend.
Twitter: @MariaHalkias
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