AT&T’s Dallas HQ Building Changes Hands
- Aug 31, 2018
A joint venture between Dundon Capital Partners and Woods Capital has acquired One AT&T Plaza, a 37-story, Class A office tower in Dallas, Texas, from Icahn Enterprises.
CBRE facilitated the transaction. The price was not disclosed.
The 965,800-square-foot landmark building, also known as Whitacre Tower, serves as the global headquarters for AT&T and is considered the focal point of AT&T’s downtown campus. AT&T has called it home since 2008.
“The appeal of the property is it’s a long-term, single-tenant lease with investment grade credit tenancy,” Gary Carr, CBRE’s vice chairman in Dallas, told Commercial Property Executive. “The buyer was attracted to the bondable income stream.”
Icahn Enterprises originally acquired the building in August of 2008 for $345 million.
According to Carr, the deal fits into the seller’s asset diversification strategy, and came from more than 20 offers on the table. The fact that AT&T renewed its lease through 2030 was a big factor in the heavy interest and presented a compelling investment opportunity.
The property is located at 208 S. Akard St., in the central business district of Dallas, on the southeast corner of Commerce and Akard streets, making it an attractive building for the market.
Upgrading the area
AT&T is in the midst of a $100 million renovation on the property.
“AT&T is renovating every floor and investing heavily in a redevelopment of the plaza area located outside the building,” Carr said.
Its Discovery District project is designed to transform the neighborhood into a popular public space. Upon completion, it will include 40,000 square feet of restaurant and retail space, pedestrian-only access, a six-story video wall facing Commerce St. and a water garden.
The company has also proposed adding a two-story food hall with balcony dining.
“AT&T has consistently demonstrated a strong commitment to Dallas and is leading the way in downtown’s revival with substantial, long-term investments,” Jonas Woods, Woods Capital’s president, said in a prepared statement. “We believe that AT&T shares our vision of downtown becoming one of the most vibrant neighborhoods in Dallas. We look forward to working with AT&T and continuing to participate in the dramatic growth of downtown.”
Joining Carr on the deal were CBRE’s Michael Monahan, Evan Stone, John Alvarado, Eric Mackey, Robert Hill and Jared Chua.
Earlier in August, Carr and his team worked on behalf of Hines to arrange the sale of a trophy office property in Fort Worth, Texas, home to Pier 1 Imports’ corporate headquarters, to Hertz Investment Group.
Image courtesy of CBRE