A Tennessee-based hotel developer has acquired 714 Main, a 24-story office building that was owned by XTO Energy Inc.
JLL announced Nov. 29 it has completed the sale to Development Service Group Inc. The 24-story office property is located within the core of downtown Fort Worth at the corner of Main and 7th Streets.
JLL Executive Vice President Ryan Matthews represented the energy company in the transaction after leading marketing efforts for the asset.
“As one of the largest, historically-registered buildings in downtown Fort Worth, 714’s re-development upside is significant and has the potential to be a truly transformational project for our city,” said Matthews. “Its centralized location and the opportunity for its re-development make 714 Main an outstanding investment for the new owners. We are thrilled to play a role in its transition.”
Built in 1921 and renovated in 2010, 714 Main currently encompasses over 185,000 square feet of office space.
To date, JLL has successfully negotiated the sale of six of XTO’s office assets in Fort Worth, including most recently the historic WT Waggoner Building at 810 Houston Street to Dallas Stars’ owner Tom Gaglardi’s Northland Properties group in August. With the sale of 714 Main, XTO has completed the sale of its downtown buildings related to the company’s headquarters move to Houston. XTO’s Central Division employees now occupy the Simpson building.
In October, the Fort Worth City Council approved the execution of an economic development agreement with Development Services Group for the development of a full-service hotel at 714 Main St.
At the time, Fort Worth Economic Development Director Robert Sturns said the economic development program agreement, based on the hotel occupancy tax, will be capped at $6 million.
The plans call for a 220-room Kimpton hotel, which will have a minimum four-star rating, according to a presentation to the city.
The developer has committed to a $56 million capital investment and a minimum of 30 full-time equivalent employees. They have also promised 10,000 square feet of meeting space, a 3,100 square foot restaurant, and a 3,100 square foot penthouse bar.
The agreement is for 10 years and will incorporate about 58 percent of the city’s 7 percent hotel occupancy tax.