Retailer J.C. Penney, which operates more than 1,000 stores in the United States and Puerto Rico, announced Tuesday that it is selling its headquarters in Plano, Texas in order to pay down debt.
Plano, Texas--J.C. Penney Co. Inc. announced Tuesday that it is selling its Dallas-area headquarters to Dreien Opportunity Partners LLC for $353 million before closing costs.

The retailer, in turn, will lease back 65 percent of the space from Dreien, with the remaining 35 percent available to new tenants.

In a company statement issued Tuesday announcing the sale, J.C. Penney Chairman and CEO Marvin R. Ellison said the retailer will use the money from the sale, which includes the surrounding 45 acres of land, to pay down debt and make improvements to its workspace.

The building lease expense will be offset by a reduction in maintenance costs, property tax and the money the retailer will save on interest by paying down its debt.

J.C. Penney has occupied the three-story, 1.8-million-square-foot office building as its global headquarters since 1992.

CBRE Capital Markets represented the company in the transaction.

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