A Needham private-equity firm is taking another swing at a sprawling JCPenney real-estate deal, offering $934 million for 117 retail properties after its earlier agreement for 119 locations collapsed into a legal fight.
Onyx Partners’ latest bid would put the firm in line to own more than 100 JCPenney store buildings nationwide if it succeeds, according to NBC Boston. The offer concerns the real estate around the stores, not JCPenney’s operating business itself — a distinction that matters to shoppers and mall owners alike.
The bid also puts a very local company back at the center of a very national retail saga. Onyx recently made its new headquarters in a former Needham electronics store, a move Hoodline previously reported as the firm expanded its local footprint.
Onyx Is Trying Again After A $947 Million Deal Fell Apart
Onyx previously agreed to pay $947 million in cash for 119 JCPenney properties, as NBC Boston reported. Copper Property CTL Pass Through Trust, the liquidating vehicle created after JCPenney’s 2020 bankruptcy, terminated that agreement on Dec. 26 after saying the buyer failed to close on time.
In a Dec. 26 filing with the Securities and Exchange Commission, Copper said it had satisfied all closing conditions and that the buyer failed to complete the transaction. The filing also said Onyx claimed Copper breached the agreement and sued for specific performance or damages, while Copper planned to contest the claims.
The Portfolio Still Has JCPenney As Its Tenant
The properties are spread across 35 states and Puerto Rico and total roughly 15.5 million square feet, according to Bisnow. They are master-leased to Penney Intermediate Holdings and its affiliates, meaning the proposed transaction is primarily a change in real-estate ownership.
Copper’s latest quarterly filing says the buyer sued in New York State Supreme Court for specific performance or $200 million in damages, and that Copper filed a motion to dismiss on Feb. 10. The trust warned that the litigation could interfere with its ability to sell the properties while the case remains unresolved.
The Seller May Need A Backup Plan
The trust was formed during JCPenney’s bankruptcy reorganization to hold and sell the retailer’s former real estate for the benefit of creditors and certificateholders. After the original sale collapsed, CoStar reported that the trust could consider a real estate investment trust or another vehicle if it cannot complete a portfolio sale.
That is what makes the fresh Onyx offer more than a routine bid: It could give Copper another path to monetize the properties, but it does not automatically erase the lawsuit or guarantee that the 117 locations will change hands. For now, the stores remain part of a national retail real-estate standoff with a Needham company still trying to close the deal.
