Fort Worth, Texas – The tallest building in Fort Worth, Texas, Burnett Plaza, was recently acquired through a foreclosure auction for $12.3 million, a significant drop from its previous sale price of over $137.5 million just three years ago, according to reports. Pinnacle Bank Texas successfully bought back the 40-story tower after the previous owner defaulted on a $13 million loan used for its purchase. The tower’s former owner, Burnett Cherry Street LLC, an affiliate of New York-based Opal Holdings LLC, faced financial struggles that led to the foreclosure.
The purchase by Pinnacle Bank Texas was made through a credit bid, valuing the building at around $12.30 per square foot. Known for being not only the tallest but also the largest building in Fort Worth, Burnett Plaza boasts over one million square feet of commercial office and retail space within its premises. Constructed in 1983, the complex stands prominently at 567 feet tall on 801 Cherry St., surrounded by a public urban park.
Despite being appraised at $104.5 million by the Tarrant Appraisal District, Burnett Plaza’s vacancy rate reached 22 percent last quarter, significantly higher than the 11.5 percent vacancy rate in Downtown Fort Worth. The Dallas Business Journal also reported that contractors filed mechanic’s liens totaling more than $1.6 million against Opal, alleging unpaid renovation work at the site. Pinnacle Bank Texas, not only acquired Burnett Plaza but also purchased a four-building Centerpoint office park in Arlington from the firm for $30 million at the same auction.
Opal’s lawsuit against Pinnacle Bank Texas claims that the lender forced the building into default. The Real Deal reported that despite its current challenges, Pinnacle Bank Texas is looking to revitalize the properties it acquired through the auction. The acquisition of Burnett Plaza and the Centerpoint office park in Arlington signal a significant shift in ownership and management in the commercial real estate market in Fort Worth, Texas.