Got an extra $100 million lying around? Landmark downtown building is back on market
March 20,2018
Star-Telegram article by Gordon Dickson
The 20-story glass structure known as the Pier 1 Imports Building in on the market — again.
The building — in the northwest corner of downtown, with gorgeous views of the Trinity River, Sundance Square and West 7th — is listed by the commercial real estate firm CBRE.
"This offering presents a rare and compelling investment opportunity to acquire a trophy office asset that provides long-term cash flow at a compelling basis that is significantly below replacement cost," according to a presentation on CBRE's website.
The crystal-shaped building often serves as a dramatic punctuation of the Fort Worth skyline, with bright lights (usually white) that can be changed to other colors, including purple to celebrate sports triumphs at nearby Texas Christian University.
The structure has an unusual history. It opened in 2004 as the corporate headquarters of Pier 1 Imports, which spent $90 million for the land and construction. In 2008, Chesapeake Energy, a huge player in natural gas exploration in Fort Worth's Barnett Shale boom in the late 2000s, bought the building for $104 million.
Six years later, Chesapeake sold the building to Houston-based Hines, which owns dozens of high-class high-rises, valued at $111 billion, in 24 countries.
"This is not anything we are commenting on right now," Hines spokesman Mark Clegg wrote in an email.
At the time of the purchase, Hines agreed to rename the building in honor of its largest tenant, Pier 1, which also extended its lease through 2027.
Pier 1, one of the largest employers downtown with roughly 870 workers, didn't immediately respond to requests for comment. But there is no indication of any workforce changes at the home furnishings company, which has struggled recently with lagging sales.
For prospective buyers, bids are due March 27.
According to CBRE's pitch, the building has 409,977 square feet of rentable space and is 100 percent leased. The property is on 11.9 acres and has 1,098 parking spaces.
Nearly two years ago, Phoenix-based Alliance Residential Co. announced plans to build a 345-unit apartment community next door.
This report includes material from the Star-Telegram archives.
Gordon Dickson: 817-390-7796