Onyx Partners Pays $947 Million for JCPenney Portfolio

Onyx Partners is betting big on a classic American retailer’s slow reinvention.

The Lakewood, New Jersey–based commercial real estate and private equity firm agreed to acquire 119 JCPenney store properties for $947 million in cash, the Dallas Morning News reported. The sale is expected to close Sept. 8 and marks one of the largest retail real estate portfolio deals in recent years.

The price amounts to nearly $8 million per store. Old-school JCPenney stores spanned about 110,000 square feet, but the retailer has trended toward 70,000 to 90,000 square feet in recent years, according to the Motley Fool.

The properties span more than 30 states, including locations in Texas, California, Florida and New Jersey. The seller is Copper Property CTL Pass Through Trust, a special-purpose vehicle created during JCPenney’s 2020 bankruptcy to hold its real estate. That trust has acted as landlord for the retailer since its restructuring.

All stores in the deal will remain open under their existing operations. The retailer is now part of Catalyst Brands, the holding company formed earlier this year by the merger of JCPenney with Sparc Group. The entity also controls Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica.

The move signals ongoing efforts to reset JCPenney’s financial structure and unlock long-term value from its real estate. Since its bankruptcy filing, the Plano-based retailer has closed more than 150 stores, offloaded distribution centers and pared down corporate staff. The company said in February it would operate just under 650 stores nationwide by mid-2025. The trust’s sale to Onyx gives JCPenney a more stable long-term leasing arrangement, while delivering a windfall to certificate holders in the trust.

The deal also reflects renewed interest from institutional investors in stabilized retail assets. Onyx Partners has been quietly assembling retail-heavy portfolios and could use the acquisition as a platform for further aggregation or redevelopment.

The property sale could mark a turning point in JCPenney’s long climb back from near collapse, even if the company’s retail future is uncertain.

The retailer is pushing a brand refresh. Its “Yes, JCPenney” campaign has focused on perception shifts and promotions, which it says has driven a 22 percent year-over-year increase in brand search demand and a 6 percent rise in foot traffic. The chain recently reported its strongest performance in home goods and fine jewelry.

— Judah Duke