Ownership of one of Plano’s largest developments has been transferred to the project lender.
A unit of Plano-based Beal Bank incurred more than $ 380 million in debt to acquire and redevelop JC Penney’s nearly 50-acre campus in the Legacy Business Park.
The developers were turning the former retailer’s headquarters near the Dallas North Tollway into a billion-dollar mixed-use project. But earlier this year, Beal Bank decided to seize the property, which had been renamed Campus to Legacy West.
And now a unit of Beal Bank has taken note of the large corporate campus, Collin County records show.
Project developer Silos Harvesting Partners had started transforming the sprawling 1.8 million square foot office complex into commercial space for several companies.
Japanese firm NTT Data leased much of the buildings after Penney scaled back its campus operations.
The land surrounding the office buildings, which were constructed in the early 1990s, has been marketed to companies for the construction of new hotels, offices, shops and apartments.
Developer Sam Ware, who bought the Penney campus in 2016 and led the property redevelopment efforts, declined to comment on the change in ownership.
Ware, who obtained a court order in February to end the planned foreclosure, was working on refinancing the property.
Notarial deeds show that his partner – the CEO of investment firm E. Pierce Marshall Jr. – on Tuesday handed over ownership of the Penney campus to CXA Corp of Beal Bank.
“We have worked diligently and in good faith to attempt to complete a financial restructuring transaction between Beal Bank and Silos Harvesting Partners LP,” Marshall said in an email. “Unfortunately, in these difficult and uncertain financial times, the numbers didn’t work out for Beal Bank and the deal didn’t go through.”
Bank Beal officials declined to comment on their plans for the campus.
The transfer of ownership is unrelated to the recent bankruptcy of retailer Penney.
The redevelopment of the Legacy West campus was one of the largest transactions of its kind underway in the West Plano and Frisco market.
The Penney Campus – built in the 1990s after the department store chain moved to Manhattan – is surrounded by the $ 3 billion Legacy West mixed-use development, which is home to companies such as Toyota, JPMorgan Chase, Liberty Mutual Insurance and FedEx Office.