The Tallest Building in Fort Worth Just Sold For a 91% Discount in Just 3 Years

Fort Worth's tallest tower, Burnett Plaza, was bought back at a foreclosure auction by Pinnacle Bank Texas after the previous owner defaulted on its debt. Pinnacle made a credit bid of approximately $12.3 million in the auction, reclaiming the 40-story building.

Background and Previous Ownership

Burnett Cherry Street LLC, a New York-based entity of Opal Holdings LLC, had purchased the tower in 2021 for over $137.5 million. However, Pinnacle Bank Texas claimed that Burnett Cherry Street defaulted on a $13 million loan, leading to the foreclosure auction.

Auction Details and Participants

The auction, held on the steps of the Tarrant County courthouse, was overseen by Alan Castetter, appointed trustee by Pinnacle Bank Texas. Burnett Plaza, located at 801 Cherry St., is valued at $104.5 million and spans over 1 million square feet. Major tenants include General Motors Financial Co. Inc., Kimley-Horn and Associates Inc., Huckabee Inc., and Freese and Nichols Inc.

Legal Issues and Claims

Opal Holdings LLC faced mechanic's liens and lawsuits from contractors alleging non-payment for renovations made in the tower. Contractors such as Tarrant Construction, JLL, and Larry Short & Associates LLC filed lawsuits claiming damages exceeding $1.6 million against Opal and Burnett Cherry Street.

Counterclaims and Lawsuits

Opal and related entities accused Pinnacle of attempting to force the building into default. A lawsuit filed on April 2 detailed these allegations. However, representatives from Cantey Hanger LLP, the law firm representing Opal Holdings, declined to comment during the auction.

Financial and Portfolio Details

Opal Holdings boasts a real estate portfolio exceeding $4 billion nationwide. In addition to Burnett Plaza, Pinnacle Bank Texas also purchased a four-building Centerpoint office park in Arlington from Opal at the auction for $30 million.