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It may be raining cash soon at J.C. Penney's headquarters. 

On Friday, J.C. Penney (JCP) - Get J. C. Penney Company, Inc. Report announced that it was pursuing a potential sale and partial leaseback of its enormous 1.8 million square foot home office campus in Plano, Texas. The department store retailer, which is fresh off a better-than-expected holiday season, said the proceeds from an eventual sale would be used to reduce outstanding debt and lower expenses.

"With the tremendous growth and development currently taking place within Plano and North Texas, there's no better time to take advantage of this lucrative market by pursuing a sale of our home office real estate," said J.C. Penney CEO Marvin R. Ellison in a statement. J.C. Penney believes the cost of leasing space within the building would be offset by a reduction in maintenance costs, property taxes and interest expense as a result of paying down debt with proceeds from the transaction.

A J.C. Penney spokesman declined to share the property's recent appraisal value. But the proceeds could be huge, says one Wall Street analyst.  

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"Having closed out last quarter with $5.1 billion in debt, J.C. Penney could probably reduce its overall levels of debt by $200 million to $300 million with realized funds from a sale of its headquarters," said Piper Jaffray analyst Neely Tamminga in a note to clients.

Shares of J.C. Penney initially fell about 5% in pre-market trading on the news, but rebounded as investors digested the prospect of the retailer boosting its bottom line via debt reduction. 

But plans to sell its home office sale may signal several things for the still-challenged retailer.

First, even with its same-store sales improving in 2015 -- and out-performing peers such as Macy's (M) - Get Macy's Inc Report -- J.C. Penney still has do all it can to reduce debt (which lowers interest expense) to drive profits. Second, J.C. Penney may have been swept into the sluggish start to 2016 for the retail sector, and hence has to raise cash in order to keep investors pleased. The lackluster start for retail has been one highlighted recently by sales warnings from household name brands such as Polo Ralph Lauren (RL) - Get Ralph Lauren Corporation Class A Report, HanesBrands (HBI) - Get Hanesbrands Inc. Report , and office mall retailer Kohl's (KSS) - Get Kohl's Corporation Report

A sale of its home office would wouldn't be J.C. Penney's first time creating value from its real estate. In Feb. 2014, the company inked a deal to redevelop 240 acres surrounding the home office it has now put on the sale block. The space is considered a prime office and mixed-use development area, and has attracted companies such as Liberty Mutual, Toyota (TM) - Get Toyota Motor Corp. Report and FedEx (FDX) - Get FedEx Corporation Report .