Burnett Plaza, the tallest building in Fort Worth, Texas, has been sold at a foreclosure auction for a mere $12.3 million, a dramatic decline from its previous sale price of over $137.5 million just three years ago. The Dallas Business Journal reported that Pinnacle Bank Texas reacquired the 40-story skyscraper through a credit bid, equivalent to just $12.30 per square foot.

The auction took place on the steps of the Tarrant County courthouse, where Pinnacle Bank Texas emerged as the buyer. The bank had claimed in public filings that the tower’s former owner, Burnett Cherry Street LLC, an affiliate of New York-based Opal Holdings LLC, defaulted on a $13 million loan taken to purchase the building in 2021.

Standing at 567 feet tall, Burnett Plaza is not only Fort Worth’s tallest building but also its largest, boasting over one million square feet of commercial office and retail space. Constructed in 1983, the complex is located at 801 Cherry St. and includes a surrounding public urban park. The Tarrant Appraisal District most recently appraised the property, despite its size and prominence, at $104.5 million.

The tower hosts notable tenants such as General Motors Financial, Kimley-Horn and Associates, Huckabee, and Freese and Nichols. However, financial troubles surfaced as contractors filed 10 mechanic’s liens totaling over $1.6 million against Opal, alleging unpaid renovation work. Tarrant Construction Services filed the largest lien, nearly $1 million, for renovating two suites and the 19th-floor bathrooms.

Opal Holdings sued Pinnacle Bank on April 2, alleging the lender’s actions forced the building into default. Burnett Plaza’s vacancy rate stood at 22 percent last quarter, compared to a significantly lower 11.5 percent vacancy rate in Downtown Fort Worth, as reported by Cushman & Wakefield.

In addition to Burnett Plaza, Pinnacle Bank also reacquired the four-building Centerpoint office park in Arlington from the same firm at the auction for $30 million.

The sale of Burnett Plaza highlights the volatile nature of the real estate market and the financial challenges faced by property owners and investors. As the tallest and one of the most prominent buildings in Fort Worth changes hands, its future remains a topic of keen interest within the community.