Retail chain J.C. Penney has agreed to allow Vornado Realty Trust to increase its stake in the company, relaxing a restriction put in place last year to limit the number of shares the real estate investment trust could buy, Dow Jones reported.

The change of heart, disclosed in a filing by J.C. Penney yesterday, is just the most recent piece of evidence in the deepening relationship between Penney and Vornado. It allows Vornado to increase its stake to 15.4 percent from 9.9 percent, including through a synthetic long position” using the derivatives market. Vornado holds a seat on J.C. Penney’s board, Dow Jones said.

Vornado and Bill Ackman’s Pershing Square Capital both have stakes in the department store chain. [more]

The J.C. Penney company plans to close some stores in South Florida in an effort to boost profitability. There are 19 outlets, including one in the Sawgrass Mills mall and one in Sunrise, whose fate is to be determined. In total, there are 15 stores in the tri-county area, according to the company’s Web site. J.C. Penney started a review of its operations in August, and said the company knew it wanted to make changes coming out of the recession. It has more than 1,100 department stores in the U.S. and Puerto Rico. [Sun Sentinel]

Two of New York City’s biggest real estate investors announced they’d become shareholders in one of the nation’s most ubiquitous department store chains, J.C. Penney. The larger investor, Bill Ackman’s Pershing Square Capital, which purchased a 16.5 percent stake in the company, valued at $900 million, is assumed to be in a deal with Vornado Realty Trust, a real estate investment trust, which disclosed its own 9.9 percent stake in the company, as well. Vornado and Pershing have a history of separately investing with big-box retailers, including Toys ‘R’ Us and Barnes & Noble, respectively. “[Pershing] in conjunction or in partnership with Vornado… are coming after J.C. Penney to try to extract what they believe is more value in that stock,” according to the CNBC video above. “Whether there’s real real estate value with J.C. Penney, it’s something of an open question.” TRD

[more]

Dadeland Mall in Miami is adding four stores to its 185 shops, including
Hollister, Swatch, Payless ShoeSource and Stride Rite. “Dadeland Mall
continues to be a vital part of the retail landscape, popular with
residents and tourists alike,” mall GM Osvaldo Dominguez said. “These
great new stores only enhance the already celebrated shopping experience
found at Dadeland Mall.” The mall is anchored by Saks Fifth Avenue, JC
Penney and Nordstrom, along with the country’s largest Limited store and
Express. It is located at 7535 N. Kendall Drive. [SFBJ]

[more]

Dadeland Mall in Miami is adding four stores to its 185 shops, including
Hollister, Swatch, Payless ShoeSource and Stride Rite. “Dadeland Mall
continues to be a vital part of the retail landscape, popular with
residents and tourists alike,” mall GM Osvaldo Dominguez said. “These
great new stores only enhance the already celebrated shopping experience
found at Dadeland Mall.” The mall is anchored by Saks Fifth Avenue, JC
Penney and Nordstrom, along with the country’s largest Limited store and
Express. It is located at 7535 N. Kendall Drive. [SFBJ]

[more]

The Boynton Beach Mall is adding several new stores, including NY Men’s
II, Rockafit, St. Royal Couture, and Bijoux Pierre, among others. Two
existing stores at the mall, Fits R Us and Kiss My Glass, a jewelry
store, have moved into larger spaces. The mall, located at 801 N.
Congress Avenue in Boynton Beach, is anchored by tenants Macy’s, Sears
and JC Penney. It has also introduced a new trackless electric train
large enough for 16 passengers. “We’re thrilled with the increase in
local enterprising interest in Boynton Beach Mall,” said GM Mick Grosh
in a statement. [Sun
Sentinel]

[more]

The Palm Beach Mall is preparing to celebrate its last Christmas before Japanese financial services firm ORIX, the mall’s mortgage servicer, takes control of the property next month. The mall’s current owner, Simon Property Group, was hit with a foreclosure lawsuit after it allegedly failed to repay $55.4 million in loans from JPMorgan Chase, and now the mall’s site is slated for development. The mall will be shuttered Jan. 30, with the exception of J.C. Penney, the Firestone automotive center, and George’s Music, all of which have outside entrances, and therefore, longer-term leases which require longer notice before termination. The city expects to hold community meetings to hear ideas for the site, where the current structure will likely be torn down, said West Palm Beach Mayor Lois Frankel. “The day of the indoor mall is probably passe,” Frankel said. “We’re looking for a new venue more appealing to today’s shoppers.” [Palm Beach Post]

Department store J.C. Penney has closed itself off from the faltering Palm Beach mall, sealing its inside entrance after the air conditioning in that section was shut down. The mall was sued for foreclosure in April and lost anchor tenants Dillard’s and Macy’s. Sears plans a liquidation sale there in January. About 30 percent of the shopping center’s storefronts are occupied. [Palm Beach Post]