- Onyx Partners is acquiring 119 retail properties for $947M in an all-cash deal.
- The sale reflects a 10.4% cap rate, with an average of $8M per property.
- Assets stem from J.C. Penney’s 2020 bankruptcy and are leased under a master triple-net agreement.
- Copper Property Trust expects to distribute up to $932M to certificate holders post-close.
A Post-Bankruptcy Portfolio Comes To Market
Copper Property Trust’s latest transaction marks the end of a five-year liquidation process, reports GlobeSt. The portfolio originated from the J.C. Penney bankruptcy in 2020. The 119-property portfolio, all under a single master lease with the department store’s successor, offered investors a unique but complex retail asset class.
A Strategic Buyer
A competitive bidding process attracted interest from a wide range of investors. Some submitted offers for individual properties, while others bid on sub-portfolios or the entire portfolio. onyx partners was ultimately chosen as the preferred buyer. Copper Property Trust CEO Neil Aronson cited Onyx’s strong ability to close and alignment with the Trust’s goals as key decision factors.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
Distribution Details
Once the deal closes—expected by September 8—Copper Property Trust plans to distribute net proceeds of $928M to $932M after estimated closing costs. Principal Financial Officer Larry Finger noted additional disbursements will follow, including rent prorations and a drawdown in reserves from $25M to $10M.
One-Tenant Challenge
Executives acknowledged investor questions about pricing, emphasizing the unique nature of the single-tenant portfolio. “Our portfolio is different… We have one tenant and one tenant was a department store,” said Finger, underscoring the deal’s strategic pricing given the inherent leasing risk.
Why It Matters
The transaction reflects ongoing investor interest in stabilized retail portfolios with predictable cash flows, despite sector headwinds. The 10.4% cap rate signals buyers are still placing a premium on income-generating real estate, particularly in the net lease space.
What’s Next
This sale brings Copper Property Trust significantly closer to completing its full liquidation. For Onyx Partners, the acquisition provides a portfolio of long-term leased, income-producing properties. The purchase price reflects a balance between yield and risk, making it a potentially smart move in today’s market.
