- Burnett Plaza was purchased at foreclosure auction for $12.3 million
- The block-shaped complex is 567 feet tall in Fort Worth, Texas.
- The 40-story building sold three years ago for more than $137.5 million.
The tallest building in Fort Worth, Texas, sold with a huge price drop.
Burnett Plaza was purchased at a foreclosure auction for $12.3 million just three years after it sold for more than $137.5 million.
The 40-story building was purchased by Pinnacle Bank Texas during auction at the Tarrant County Courthouse on Tuesday.
According to public records, Pinnacle claimed that the building’s previous owner, Burnett Cherry Street LLC, an affiliate of New York-based Opal Holdings LLC, failed to repay a $13 million loan that was used to purchase the tower in 2021.
Burnett Plaza was purchased at a foreclosure auction for $12.3 million just three years after it sold for more than $137.5 million.
The 40-story building was purchased by Pinnacle Bank Texas during auction at the Tarrant County Courthouse on Tuesday.
Ronny Korb, founding president of Pinnacle Bank Texas
The massive building, built in 1983, is also considered the largest commercial office and retail space at more than one million square feet, according to its website.
The block-shaped building, located at 801 Cherry Street, is located near a public urban park and is 567 feet tall.
Dallas Business Journal reported that the complex was recently appraised at $104.5 million by the Tarrant Appraisal District.
General Motor Financial, Kimley-Horn and Associates, Huckabee and Freese and Nichols are among some of the tenants inside the building.
Contractors filed 10 mechanics liens totaling more than $1.6 million against Opal Holdings LLC alleging uncompensated renovation work at the site, Dallas Business Journal reported.
According to the documents, one of the liens totaled approximately $1 million and was filed by Tyrant Construction Services for renovations to the 19th floor bathroom and two suites.
Contractors filed 10 mechanics liens totaling more than $1.6 million against Opal Holdings LLC alleging uncompensated renovation work at the site.
On April 2, Opal sued Pinnacle, alleging that the lender forced the building into default.
Pinnacle Bank Texas is led by founding president Ronny Korb, who has been an officer of the bank since 1999, according to the website.
The bank itself is family owned and operated with 29 branches throughout the Lone Star State and 167 branches in eight other states.
Last quarter, vacancy in the building was 22 percent, while vacancy in the downtown Fort Worth area hit just 11.5 percent, according to The Real Deal.
Commercial and office real estate has become a ticking time bomb as foreclosures have increased across the United States as rising interest rates and the slow return of workers to office spaces have begun to take its toll
In March, there were about 625 commercial real estate foreclosures, up six percent compared to February and 117 percent more than the same period in 2023, according to the latest figures from the real estate data provider. ATOM.