JCPenney plans to close three stores in the greater Phoenix market and make the locations part of a multi-state portfolio sale.
In January, Newmark plans to market a retail portfolio of 120 JCPenney locations in 34 states, according to CoStar. The three locations in the Phoenix region include one in Mesa, another in Glendale and a third in Goodyear, the Phoenix Business Journal reported. Newmark Managing Director Paul Penman is involved in the sale.
The three department stores account for nearly half of JCPenney’s footprint in the metro market. The chain has 17 stores in Arizona, with seven in the Phoenix area.
The 15.86 million-square-foot multi-state portfolio belongs to Copper Property CTL Pass Through Trust, an entity created in 2021 to sell 160 stores and some industrial properties to reimburse investors after JCPenney’s bankruptcy. So far, the trust has completed the sales of 37 stores and six warehouses.
Brookfield Property Group and Simon Property Group bought the retail operations in the bankruptcy.
The Phoenix-area retail spots on the auction block include locations in the Arrowhead Towne Center in Glendale, Superstition Springs Center in Mesa and at the Palm Valley Cornerstone shopping center in Goodyear. The Mesa and Glendale stores are connected to Macerich-owned indoor malls; the Goodyear store has its own building.
In terms of size, the Arrowhead store has 146,913 square feet, Superstition Springs has 153,514 square feet and Palm Valley Cornerstone has 98,101 square feet. The Goodyear store has the highest rent per square foot in 2025 at $9.36, while both the Glendale and Mesa’s stores’ 2025 rent will be $6.24 per square foot, according to CoStar.
All three stores have long-term leases with JCPenney, the Business Journal said.
— Joel Russell