FORT WORTH—Designed by Wyatt C. Hedrick for businessman Richard Dulaney, the circa-1927 Petroleum Building features Art Deco elements and has gone through several alterations during its 90-year history. The 117,000-square-foot building was restored in 2004 by XTO Energy.
Sundance Square recently purchased the downtown building from XTO Energy for an undisclosed price. The 14-story building is situated on a full city block at W. Sixth Street between Houston and Throckmorton Streets.
“The availability of the Petroleum Building presented a great opportunity to bring the landmark building into our portfolio,†stated Johnny Campbell, CEO of Sundance Square. “The Petroleum Building will continue to be occupied by XTO Energy at least through mid-2018.”
Sundance Square is an entertainment district spanning 35 blocks in downtown Fort Worth. The multi-use development attracts more than 10 million visitors each year. With the addition of the Petroleum Building, Sundance Square will be comprised of more than 4 million square feet of office, retail and residential leasing in 44 buildings. In addition, the 1-acre outdoor plaza features restaurants, shops, fountains, a stage, 32-foot umbrellas and covered seating.”
A parking garage adjacent to the building is also included in the purchase. Connected by an enclosed skywalk, the garage features 534 parking spaces and additional retail space. The Petroleum parking garage will ultimately be incorporated into Sundance Square's generous parking program.
“The parking garage is a huge part of this deal. With 534 more parking spaces, Sundance Square reaffirms its commitment to provide free parking to guests who visit and shop/dine in the 35-block development,” Carolyn Alvey, Sundance Square rep, tells GlobeSt.com. “The building is gorgeous and has been well-maintained, which gives Sundance Square options for future use. That is still to be determined after XTO Energy vacates the building.”
JLL executive vice president Ryan Matthews represented XTO Energy Inc. in the transaction and led the team's marketing efforts.
“The significance of the asset and its location in downtown contributed to a depth of buyers that span multiple uses,” Matthews tells GlobeSt.com. “The buyer was part of a competitive bid process and JLL felt that the culmination of the terms of their offer were superior to the other offers under consideration.”
Last August, Sundance Square announced it had extended its partnership with Green Mountain Energy to provide renewable energy to all of its buildings. The 35-block development is estimated to avoid approximately 8.4 billion pounds of carbon dioxide through 2023, which is the equivalent of planting more than 7 million trees.
The total vacancy for Fort Worth's CBD is 11.8%, and fourth quarter net absorption was 49,803 square feet (90,459 square feet year to date) with average asking rents of $26.67, according to JLL research.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
