# JCPenney Countersues Valley West Mall Developer Over Lease Running to 2032

> JCPenney filed counterclaims against Threshold Capital over its Valley West Mall lease, seeking lost-profit damages and rent abatement in the Iowa dispute.

- Published: 2026-11-11T19:11:31+00:00
- Section: Legal & Disputes
- Author: News Desk
- URL: https://newsforagent.com/news/2026-11-11/jcpenney-valley-west-mall-counterclaim
- Source: [Yahoo](https://www.yahoo.com/news/us/articles/jcpenney-files-counter-lawsuit-valley-185228900.html)

## Key takeaways

- JCPenney filed counterclaims on November 3 through Penney Property Sub Holdings LLC in Polk County court over its Valley West Mall lease.
- The Valley West lease runs through March 31, 2032, and lets JCPenney block redevelopment that would close the shopping center or its parking lots.
- JCPenney seeks damages for past and future lost profits and diminished rental value, plus rent abatement.

JCPenney filed counterclaims on November 3 against Valley West Mall developer [Threshold Capital](https://akta.pro/company-profiles/0026hry/threshold-capital), denying that its lease blocks the West Des Moines mall's redevelopment and seeking damages for lost profits and rent abatement. [Yahoo](https://www.yahoo.com/news/us/articles/jcpenney-files-counter-lawsuit-valley-185228900.html) published the account of the filing by Penney Property Sub Holdings LLC.

## Inside JCPenney's Valley West Mall Counterclaim

Threshold Capital announced on September 29 that it had closed its purchase of the 856,000-square-foot mall and its 58-acre site just north of Interstate 235. The developer is redeveloping the property through its entity Project 1551, with plans for housing, offices, an outdoor music venue, restaurants, a hotel and a park setting.

On September 28, the day before the closing announcement, Project 1551 sued in Polk County court to break the lease signed in 1974, arguing the mall can no longer operate as a viable regional shopping center. [JCPenney](https://akta.pro/company-profiles/0000bf2/jcpenney) denied that premise in its counterclaims, pointing to Des Moines metro shopping centers including Jordan Creek Town Center.

"The only difference between those successful shopping centers and the Valley West Mall is a failure of management," the retailer said in its lawsuit. JCPenney also denied impeding development and denied requesting "extortionate payments" to end leases, and said it intends to keep operating the profitable location.

The lease, extended in July, runs through March 31, 2032, and allows the store to block redevelopment that would close the shopping center or its parking lots. West Des Moines Mayor Russ Trimble said JCPenney's unwillingness to allow demolition caused a previous redevelopment attempt to fall through earlier this year. Threshold president Brian Martin said in a release announcing the sale, "And it is not our intent to force JCPenney out."

## JCPenney's Store Count and Sales Base

JCPenney is a department store chain founded in 1902 that sells apparel, home goods, jewelry and beauty, and has operated as a subsidiary of Catalyst Brands since January 2025, according to akta.pro [company records](https://akta.pro/company-data). The same records put its store count at approximately 650 as of late 2025 and its Q4 2025 net sales at $1.9 billion, down 8% year over year.

The Valley West store is the only JCPenney in the Des Moines metro and one of two in central Iowa, alongside a store at Ames' North Grand Mall.

## Earlier JCPenney Lease and Store Moves

A Texas filing reported in November 2026 shows IKEA Property owns the 150,657-square-foot JCPenney space at The Woodlands Mall, with an $18 million renovation planned and construction estimated to start in March 2027, the Houston Chronicle reported.

JCPenney launched a holiday campaign on November 2 aimed at deal fatigue, featuring real shoppers and a weekly deals cheat sheet, with "Really Big Deals" returning through December 13, Marketing Dive reported.

## What Comes Next in the Polk County Case

Threshold Capital's Project 1551 filed its lease challenge in Polk County court on September 28, and JCPenney answered with counterclaims on November 3.

## Companies in this story

- [JCPenney company profile](https://akta.pro/company-profiles/0000bf2/jcpenney) · website: https://www.jcpenney.com
- [Threshold Capital company profile](https://akta.pro/company-profiles/0026hry/threshold-capital) · website: https://thresholdcapital.com

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