Texas Border Business
Texas Border Business
Copper Property CTL Pass Through Trust, the real estate entity formed in the aftermath of JCPenney’s 2020 bankruptcy, has finalized the sale of 119 JCPenney retail properties to an affiliate of Onyx Partners, Ltd. for $947 million in cash, according to an official announcement by the Trust dated July 25, 2025.
The Trust stated: “The Buyer has now completed its due diligence, and its deposit under the Agreement is non‑refundable. The closing of the sale is expected to occur on or before September 8, 2025.” This final step marks one of the most significant real estate transactions involving a retail brand in recent years.
Included in the transaction are two South Texas locations: Harlingen’s Valle Vista Shopping Center and Brownsville’s Sunrise Mall. These are among 21 JCPenney properties in Texas impacted by the sale—the most of any state.
Copper Property CTL Trust clarified that this transaction involves only ownership of the real estate, not the JCPenney retail operations themselves. The press release emphasized:
“The real estate transaction announced yesterday represents a change in landlord but does not impact JCPenney store operations. These 119 JCPenney stores will continue to operate and serve our loyal customers and communities.”
Each of the properties is currently leased under a long-term triple-net master lease to Penney Intermediate Holdings LLC, the current corporate operator of JCPenney stores. Under the terms of that lease, the tenant (JCPenney) is responsible for all real estate-related expenses, including maintenance, insurance, and property taxes. As the Trust explained, this structure allows for seamless continuity:
“The Master Lease provides for long-term occupancy of the properties by JCPenney and ensures that store operations will not be disrupted.”
The Trust was created as part of JCPenney’s Chapter 11 reorganization plan, which transferred ownership of hundreds of former JCPenney properties to creditors. Copper Property has since operated under the oversight of a board of independent trustees and retained Newmark Group as its real estate advisor.
In the process leading up to this sale, Newmark evaluated over 700 offers for the 119-property portfolio. Onyx Partners ultimately emerged as the selected buyer, following what the Trust described as a “competitive, strategic review.”
Proceeds from the sale, expected to net between $928 million and $932 million after closing costs, will be distributed to holders of Trust certificates—primarily creditors from the bankruptcy proceedings. The Trust noted that this transaction will enable “the wind-down of the Trust and the return of value to its stakeholders.”
While some JCPenney stores have closed in recent years due to market performance or lease expiration, Copper Trust made clear that this sale is unrelated to those closures and is instead a capital-raising measure. “This transaction is a real estate sale, not a downsizing of JCPenney’s store footprint,” the Trust concluded.
As of now, all 119 locations—including those in Harlingen and Brownsville—remain open and fully operational, with no changes announced to staffing, hours, or in-store services.
