J.C. Penney's corporate headquarters.

J.C. Penney Co. Inc. has completed the sale of its Home Office building and surrounding 45 acres of land in Plano, Tex., to Dreien Opportunity Partners LLC, general partner of Silos Opportunity Partners LP. The gross sale price was $353 million before closing and transaction costs.

As previously disclosed, the company plans to lease back about 65 percent of the building, leaving the remaining square footage available for new tenants. The building lease expense would be offset by a reduction in maintenance costs, property taxes and interest expenses as a result of paying down debt with the transaction’s proceeds.

In February, Penney’s said it was pursuing a possible sale and partial leaseback of its headquarters as it tries to reduce debt and cut expenses.

“Since we began exploring the sale of our Home Office, we have been quite pleased by the level of interest in the building,” said Marvin Ellison, chairman and chief executive officer of J.C. Penney. “Our team reviewed numerous offers and decided that it was most advantageous to select Dreien Opportunity Partners, whose leadership recognizes the building’s long-term potential and has demonstrated tremendous support of the company as we maintain our Home Office operations within the booming Legacy corridor.

“This transaction also represents a significant financial milestone for the company, as proceeds from the sale give us the opportunity to reduce outstanding debt and make improvements to our workspace, creating a modern and efficient environment that fosters productivity and seamless collaboration,” added Ellison.

Penney’s has occupied the three-story, 1.8 million-square-foot building as its global headquarters since 1992. CBRE Capital Markets represented the company in the transaction.