Collin Creek Mall developer offers $15M for J.C. Penney store

PLANO, TX – Farmers Branch-based Centurion American Development Group, which is in the midst of a $1 billion redevelopment of Collin Creek Mall in Plano, has offered $15 million to buy the former mall’s J.C. Penney Co. Inc. store, according to court filings.

As first reported by the Dallas Morning News, the purchase would include the store itself, located at 821 N. Central Expressway, and its 10.66 acres of land, all owned by JCPenney. The store has remained open while much of the mall has been demolished. JCPenney was originally intended to be part of the mall’s redevelopment, but backed out last week due to the company’s bankruptcy reorganization.

“Following a comprehensive evaluation of our retail footprint and a careful analysis of future strategic fit for the company, JCPenney has decided to close its Collin Creek Mall store, which was previously planned for renovation alongside the Collin Creek Mall redevelopment,” the company said in a statement.

A liquidation sale at the Plano store will begin on Sept. 3. By November, the store is expected to be permanently closed.

According to court filings, JCPenney’s lenders and advisors are onboard with the sale to Centurion American, stating that they believe the sale would yield the highest price for the property. If the sale is not approved by the court, it could go to auction. JCPenney is being advised by Cushman & Wakefield and B. Riley Real Estate.

The two firms are also helping JCPenney sell off 141 of its unexpired store leases and 24 other stores it owns. The 24 stores for sale include one in North Texas, a 201,850-square-foot store at Ridgmar Mall in Fort Worth. The 141 leases include two in the Metroplex, a 104,696-square-foot store at The Shoppes at Timber Creek Crossing in Dallas and a 152,873-square-foot store at the Music City Mall in Lewisville. Offers on any of the 141 leases are due Sept. 9 with auction dates set for Sept. 14 and Sept. 15.

When approved by the Plano city council in April 2019, plans for the Collin Creek Mall redevelopment included 500 single-family homes, 300 independent living units, 2,300 apartments, 1.3 million square feet of office, 300,000 square feet of retail, 200,000 square feet of entertainment space and 40,000 square feet of restaurants. Plans also include a 200-room hotel with 40,000 square feet of event space. The project will be built across multiple phases.