Fort Worth's tallest building sells for just $12.3M at auction in stunning price drop
Bargain buy?
Burnett Plaza, the tallest building in Fort Worth, Texas, has been purchased via foreclosure auction for $12.3 million just three years after it was sold for more than $137.5 million, according to the Dallas Business Journal.
The 40-story behemoth was bought back by Pinnacle Bank Texas in the auction held on the steps of the Tarrant County courthouse on Tuesday.
Pinnacle had claimed in public filings that the tower's former owner, Burnett Cherry Street LLC, an affiliate of New York-based Opal Holdings LLC, defaulted on a $13 million loan used to purchase the building in 2021.
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The bank bought it back with a roughly $12.3 million credit bid, just $12.30 per square foot.
As well as being the tallest in Fort Worth, Burnett Plaza is also considered the largest, with over one million square feet of commercial office and retail space, according to its website.
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Constructed in 1983, the distinctive block-sized complex stands at 567 feet tall at 801 Cherry St. and is surrounded by a public urban park.
It was most recently appraised at $104.5 million by Tarrant Appraisal District, according to the Dallas Business Journal. Tenants include General Motors Financial, Kimley-Horn and Associates, Huckabee, as well as Freese and Nichols.
The Dallas Business Journal reports that contractors filed 10 mechanic’s liens totaling more than $1.6 million against Opal, alleging unpaid renovation work at the site. The largest, amounting to nearly $1 million, was filed by Tarrant Construction Services for renovations of two suites and the 19th-floor bathrooms.
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Opal sued Pinnacle on April 2, alleging the lender pushed the building into default, the outlet reported.
Burnett Plaza’s vacancy was at 22 percent last quarter, The Real Deal reports, citing Cushman & Wakefield, with vacancy in Downtown Fort Worth much lower at 11.5 percent.
Pinnacle also bought back a four-building Centerpoint office park in Arlington from the firm at the auction for $30 million, according to the Dallas Business Journal.