The landmark Petroleum Building, a 14-story structure on a full city block in Fort Worth, is on the market for tenants.
Sundance Square on Thursday announced it will begin marketing the 117,000-square-foot building at West Sixth Street between Houston and Throckmorton streets. Sundance Square bought the building in January from XTO Energy Inc. for an as-yet undisclosed price.
XTO, an affiliate of Irving-based Exxon Mobil (NYSE: XOM), is shifting its corporate operations and about 1,500 jobs to Exxon's 385-acre campus in Houston. The company has put multiple Fort Worth buildings, including its corporate office in the WT Waggoner Building, up for sale because of the move.
Built in 1927, the Petroleum Building was restored in 2004 by XTO Energy. Designed by Wyatt C. Hedrick for businessman Richard Dulaney, the building features art deco elements and has gone through several alterations over its 90-year history.
“The market is strong in downtown Fort Worth and we believe now that the Petroleum Building is part of Sundance Square’s portfolio, the demand for this property will be high,” said Johnny Campbell, CEO of Sundance Square. “We will continue to create a vibrant central business district that emanates throughout downtown. The Petroleum Building will maintain its position as a notable property.”
The building will lease for $23 to $25 per square foot, depending on the level of tenant improvements desired, Campbell said in an interview with the Dallas Business Journal.
“It's a beautifully restored building," Campbell told the DBJ. "It’s literally two blocks from the plaza, which makes it a really attractive location.”
Sundance was leasing some of the building back to XTO for a few months after purchasing it, but the company has fully vacated and the space is officially available now, Campbell said.
Robert Gamblin, Sundance Square’s director of leasing, will handle leasing for the Petroleum Building and oversees leasing for the broader 35-block development in downtown Fort Worth.
A parking garage, connected to the Petroleum Building by an enclosed skywalk, will have 534 parking spaces and additional retail space. The Petroleum Building’s parking garage will be incorporated into Sundance Square’s parking program, offering free parking to guests visiting Sundance Square on weekends and after 5 p.m. on weekdays.
The Sundance Square development has more than 4 million square feet of office, retail and residential leasing in 45 buildings and attracts more than 10 million visitors each year. Its occupancy rate is over 90 percent across commercial, retail and residential spaces over the last 10 years, according to its website.
Exxon acquired XTO in 2009 for $41 billion. At that time, XTO was the largest domestic natural gas producer in the U.S. Today, the company has roughly 5,000 total employees.