JCPenney Store Portfolio Sale Collapses After Buyer Misses Deadline

The planned sale of 119 JCPenney store properties has collapsed after the buyer failed to close by a late-December deadline. Copper Property CTL Pass Through Trust, which controls the assets, terminated the $947 million all-cash deal on Dec. 26, citing the buyer’s failure to complete the transaction on time. The buyer, an affiliate of Onyx Partners Ltd., had agreed to purchase the portfolio earlier this year.

In a filing with the U.S. Securities and Exchange Commission, Copper said it met all closing conditions, while Onyx did not. Copper is holding $2 million of the buyer’s $5 million deposit and is seeking to claim the remaining $3 million from escrow, a move Onyx is contesting through litigation. Onyx has argued Copper breached the agreement, while Copper says it intends to aggressively defend its position. According to CoStar, Onyx indicated prior to the deadline that it was still waiting on tenant documentation from the trust...