The Copper Property CTL Pass Through Trust, created after J.C. Penney’s 2020 bankruptcy, is set to sell a portfolio of 119 J.C. Penney retail stores to Boston-based private equity firm Onyx Partners in a $947 million all-cash deal. The trust explained that the decision followed an extensive sale process involving over 700 interested parties and multiple bid types, with Onyx emerging as the most capable buyer based on closing certainty, strategy alignment, and pricing.
The deal averages roughly $8 million per store—lower than some prior individual sales, prompting investor scrutiny. However, trust executives defended the portfolio sale strategy as the most efficient way to meet their obligation to divest all properties by January 2026.
On a call with analysts and investors, the trust highlighted that Newmark, assisted by Hilco, led the sale process and received a wide range of bids including single asset and sub-portfolio offers. Onyx ultimately stood out in terms of execution ability and overall terms.
The 119 stores are leased under long-term triple-net agreements with J.C. Penney, which continues to operate around 650 stores under ownership by Simon Property Group and Brookfield. The trust expects to distribute between $928 million and $932 million to creditors after closing costs, with additional reserves to be paid out in phases post-closing.
Simon and Brookfield were entitled to first refusal on 54 stores but only exercised that right for three. The final transaction, with a 10.37% cap rate, is expected to close on September 8, following the buyer’s completion of due diligence and deposit submission.
Source: CoStar
