A partnership between the Meridian Group and Martin-Diamond Associates has acquired 5 Mid-Atlantic JC Penney shops for $53M.
Copper Property CTL Move By way of Belief, the Jersey Metropolis-based entity created final 12 months to dump the division retailer chain’s actual property property, bought the portfolio. Acore Capital financed the deal, Newmark represented the vendor.
The 5 shops, encompassing 900K SDF, all are in regional buying malls in Virginia, Maryland and Delaware.
The shops are situated at Truthful Oaks Mall in Fairfax, VA; Springfield City Middle in Springfield, VA; The Mall in Columbia in Columbia, MD; Westfield Annapolis Mall in Annapolis, MD; and Christiana Mall in Newark, DE.
In a separate transaction involving an undisclosed purchaser, Copper Property additionally bought JC Penney shops at Pheasant Lane Mall in Nashua, NH and Dulles City Middle in Sterling, VA.
“We imagine these gross sales mirror present market circumstances and the market’s recognition of the stable efficiency of J.C. Penney post-reorganization,” mentioned Neil Aaronson, principal government officer of Cooper Property.
JC Penney, which emerged from chapter safety final 12 months, will proceed to function the seven shops.
JC Penney filed for Chapter 11 in Might 2020, citing hardships from the pandemic lockdowns. Later that 12 months, Simon Property Group and Brookfield Asset Administration acquired JC Penney for $800M in an public sale.
In 2021, JC Penney’s retail and working property exited Chapter 11 chapter safety by the creation of Cooper Belief, which was created to promote 160 retail property and 6 distribution facilities to third-party buyers.
To this point, Cooper has bought 23 retailer properties and 6 distribution facilities, producing $868M in sale proceeds. The distribution facilities portfolio, encompassing greater than 10M SF, was bought in December in a $557M cope with Nationwide Industrial Portfolio Property Proprietor LLC.
J.C. Penney holds long-term triple internet leases on all the property being bought by Cooper.
The partnership between Simon, the main mall REIT, and Brookfield Asset Administration additionally teamed as much as purchase two different retailers that went into chapter 11: fast-fashion retailer Ceaselessly 21 in 2020—a deal that Brookfield divested in 2021—and teenage retailer Aeropostale, which went beneath in 2016.
In response to a report within the NY Put up, Simon and Brookfield collectively bid $68 per share in April in an unsuccessful effort to accumulate the retail chain Kohl’s in an $8.6B transaction.
Earlier this month, Oak Road Actual Property Capital supplied to accumulate a portion of Kohl’s portfolio in a $2B sale-leaseback deal, GlobeSt. reported.
