JCPenney has sold its Buena Park distribution facility to Oak Brook, Ill.-based CenterPoint Properties for $131.3 million.
The troubled retailer announced plans to sell the 1-million-square-foot, 24-acre compound at 6031 Orangethorpe Ave. in February, calling the move “an effort to monetize a lucrative real estate asset.”
The company said it is shifting operations to the Inland Empire.
Louis Tomaselli, a senior managing director at JLL, said JCPenney will lease back the center for about a year while CenterPoint looks for a new tenant.
JCPenney did not immediately return requests for comment.
The expansive building is divided into four 250,000-square-foot sections, which could create an opportunity for multiple tenants, Tomaselli said.
“They’re (CenterPoint) focused on a single tenant, but given the market, they’re probably going to find one to three tenants for the building,” he said. “They’ll get higher rents too if they divide the building.”
Tomaselli pointed out the compound, a hub for JPC’s West Coast operations, is old and CenterPoint will have to make some improvements before a new tenant moves in.
The property was built in 1967, according to CoStar Group, a commercial real estate data provider.
Village at Orange store
JCPenney is downsizing locally and nationally. The location at the Village at Orange will shutter mid-June. It’s the only retail store in Southern California among 138 so far marked for closure nationwide by the company.
The Orange store has 65 associates. Some will be relocated to other stores and others will get severance benefits, the company said.
The Orange location was unable to renew its lease with property owner A&C Ventures of Sonoma, the firm’s broker, Michael Brandon, told the Register in March.
Tim McMahon, a leasing broker with CRBE, said the group is looking for a single tenant but could subdivide the space if the group is unable to find a single tenant.
The retail space is roughly 102,000 square…