JC Penney Sells Its HQ To Dreien Opportunity Partners In Sale-Leaseback
The 1.8M SF, Class-A office campus at Legacy West formerly known as the JC Penney Campus has sold to Dreien Opportunity Partners. Dreien will rename it The Campus at Legacy West, pump $60M into renovations and put the surrounding 45 acres back on the market.
While the terms were undisclosed in releases, MarketWatch estimates the sale at $353M. JC Penney will lease back about 65%, which it has occupied since the property’s completion in 1992. That leaves more than 680k SF of contiguous office space available within Legacy.
During due diligence, Dreien discovered it could add 300k SF by converting space under the roof housing air handlers. This conversion would make leasable space around 1M SF. Colliers, led by John Conger and David Quisenberry, will lease the office product; those vacancies will be available for move-in April 2017.
The three-story office Campus at Legacy West is flanked by eight office wings on 57 acres. It includes two cafeterias, a fitness center, on-site retail with Subway and Walgreens, a childcare center, a florist, a healthcare facility and two adjacent three-level parking garages. Dreien will also expand the existing Starbucks and Subway, refresh the existing food service and Work Café, and add space for a beauty store.
The new owner plans to add walking and biking trails and an entertainment aspect surrounding the lake, which will link to Toyota and JPMorgan Chase campuses and Legacy West.
Dreien will sell the surrounding 45 acres for office, multifamily, condos, hotels and retail. Davidson & Bogel Real Estate's Edward Bogel and David Davidson Jr. will handle that listing.