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JCP sales campus in Plano for $400 Million

JCP sales campus in Plano for $400 Million

The building and land of  JC Penney’s  corporate headquarters campus in Plano was recently sold to SAM WARE’s Drien Opportunity Partners for more than $400,000,000Beal Bank, owned by billionaire Andy Beal,  is located just southeast of the Penney Campus  on Legacy Drive and Dallas Parkway, is financing $388.7M of the $400M transaction

The partnership of the new owners headed by Sam Ware’s firm will be redeveloping the Penney’s 1.8 million-square-foot head office complex located just west of DNT. Besides the Penney’s campus buildings, right at 40 acres of surrounding land was included in the deal.  Sam Ware states a little over $100M will be going into the bones of the 1.8 million square-foot building while Penney’s will be spending $40M on the 1 million square-foot portion of the building they will be leasing back from Drien’s Opportunity Partners.

The 40 acres, included in the deal, is surrounded on two sides by the $3.2 billion Legacy West development which is the largest real estate project currently underway in North Texas. One of the major factors in Penney’s deciding to sell the land and building of their campus was to be able to downsize their office space into about two thirds of he existing building.  Based on this and in order to lease out the office space JCP will no longer be using DOP is investing $100M in updating of the building.

Upon completion of the $100M in updates DOP will be the owner of a Class A building having the most contiguous space available in North Texas.  JCP will continue to occupy1.1 million square feet of office space.  After renovations are completed DOP and Colliers will be renting 600,000 square feet that JCP will vacate, plus an additional 300,000 square feet of office construction in an underused portion of the existing complex.  Additionally DOP will be adding 1400 spaces to the existing garage. Other amenities being adding to the office building complex  will be an on-site daycare, fitness center, a doctor and dentist plus pharmacy, florist and additional food services.  And for those who might want to go outside during the day  additional walking and bike trails are being added.

TAKEAWAY:  The Penney’s headquarter building and land couldn’t be better located (remember in REAL ESTATE ….location ……location….location is the key word an investor takes into consideration).  This project shows the strength of the Dallas/Plano/Frisco market and specifically WEST PLANO with this campus being in the absolute ‘sweet spot’ of the most dynamic real estate market in the country.  The campus is just across the street from where Toyota is building its new North American headquarters and FedEx Office regional campus is just across Legacy Dr from Toyota also.  And JP Morgan Chase and Liberty Mutual Insurance are building huge new regional office centers next door.  And let’s not leave out a $100M single family home development being done by Britton Homes of Texas which will set right in the middle of Communications Dr between JCP campus and Legacy West Urban Village.

About Jerold Smith

From 35 years in the corporate world to a full-time Broker & REALTOR® for the last 15 years, I know real estate. I share my extensive knowledge and expertise with buyers, sellers or investors, personally. I am a NATIVE TEXAN and know the local market better than anyone else. Any questions? Just ask.

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