The historic Fort Worth office tower housing employees from XTO Energy Inc., a subsidiary of Irving-based Exxon Mobil Corp. (NYSE: XOM), has sold to the real estate investment group behind Sundance Square.
Terms of the acquisition were undisclosed. The deal includes the 14-story, 117,000-square-foot Petroleum Building on a full city block at West Sixth Street between Houston and Throckmorton streets, as well as an adjacent 12-story executive garage.
XTO Energy plans to relocate about 1,600 workers from North Texas to Exxon’s 385-acre campus in Springwoods Village in north Houston. About 1,200 employees will make the move by mid-2018, with another 400 employees moving in 2020. The relocations have been a boon for the housing market in the area.
The Art Deco-style Petroleum Building is expected to continue to be occupied by XTO Energy through at least mid-2018.
The availability of the Petroleum Building presented an opportunity to bring the landmark building into the group’s portfolio, said Sundance Square CEO Johnny Campbell.
XTO Energy has been in the historic building since the company restored the 1927-built property in 2004. The building has gone through several alterations over its 90-year history after being designed by Wyatt C. Hedrick for businessman Richard Dulaney.
In all, Sundance Square will total more than 4 million square feet of office, retail and residential space in a total of 44 buildings. The adjacent parking garage next to the Petroleum Building brings 534 parking spaces and additional retail space into the investment group’s real estate portfolio.
XTO Energy also sold three additional properties, or four of the seven office properties the company has been marketing. The four properties totaling 281,204 square feet include:
The Binyon-O’Keefe Building at 210 East Seventh St. in Fort WorthThe former Swift & Co. Building at 600 East Exchange Ave. in the Fort Worth StockyardsThe Montgomery Ward/Tindall Storage building at 801 Grove St. in downtown Fort Worth
JLL’s Ryan Matthews represented XTO Energy in its real estate deals. The energy firm still has three additional office properties on the market in North Texas.