Fort Worth's Iconic Burnett Plaza: A Remarkable Comeback Story!

By Bob Francis, Breaking Now News
October 13, 2024

After a tumultuous few years marked by contractor lawsuits, lender disputes, and even a foreclosure, Fort Worth's renowned 40-story Burnett Plaza, located at 801 Cherry St., has officially returned to local ownership. This iconic tower is back in the hands of those who truly understand its value and potential.

The Acquisition Journey

Swiss Burnett LLC, a firm spearheaded by Andy Hansen, who also leads a commercial real estate company in Stephenville, successfully acquired the building on September 27 via a special warranty leasehold deed from Pinnacle Bank Texas. The initial report was covered by the Dallas Business Journal, highlighting the transaction's significance.

Meet the New Owner

Hansen is not just any real estate mogul; he is the president of Trafalgar Homes and the CEO of the Hansen Stewardship Foundation. With a history of successful developments across the Dallas-Fort Worth area and beyond, Hansen expressed optimism about the future of Burnett Plaza:

• “We’ve been around and also have some developments in other states, but we’ve done real well,” he stated.
• Details regarding the acquisition price remain undisclosed, but a deed filed with the Tarrant County clerk indicates a $67.54 million loan from Pinnacle Bank.

A Unique Opportunity

Hansen learned about the building when he stumbled upon reports indicating it had been sold at foreclosure for just $12.3 million—a stark contrast to its original purchase price of $130 million in 2021. Pinnacle Bank had to foreclose on the loan, taking control of the building from its previous owners, Opal Holdings LLC.

Despite the media narrative portraying this as a reflection of the pandemic's impact on office spaces, finance and real estate professor Sriram Villupuram from the University of Texas at Arlington clarified that the $12.3 million figure only pertained to one loan and did not represent the building's full value.

Strategic Vision for Burnett Plaza

Upon his inquiry to Pinnacle Bank, Hansen discovered their plans to stabilize and eventually market the property. He expressed interest in acting quickly, which resulted in him acquiring the largest office building in his portfolio:

“I was told it would typically be a four-month deal, but we did it in two,” Hansen recounted. “Whatever happens, don’t let us be the ones standing in the way of a deal.”

Future Plans and Challenges

Hansen's firm now owns a diverse array of properties, including multifamily, industrial, and office buildings, with Burnett Plaza as the centerpiece. His son, Andrew Hansen Jr., will oversee operations. The new ownership aims to:

• Increase occupancy rates (currently about 80% leased) by attracting new tenants.
• Address deferred maintenance issues, including refreshing the lobby and adding a fitness center.

“When you have a building with over 1 million square feet of space, that means you have a lot of empty space,” he noted. Current tenants include General Motors Financial Co., Kimley-Horn, Huckabee, and Freese and Nichols.

Historical Significance

Burnett Plaza was built in 1983 and designed by the renowned Sikes, Jennings & Kelly Architects from Houston. Today, it remains the tallest building in Fort Worth, a testament to the city’s evolving skyline.

What do you think?

• Do you believe Fort Worth's office market is truly rebounding, or is it just a temporary blip?
• Is investing in older buildings like Burnett Plaza a smart move in today's market?
• What are your thoughts on the impact of remote work on the future of office spaces?
• Should the city prioritize revitalizing older buildings over constructing new ones?

Your input is valuable! Share your thoughts in the comments below.