Burnett Plaza Tower in downtown Fort Worth could be facing foreclosure after a decision by the owner’s lender, Pinnacle Bank.
The notice for foreclosure on the 40-story, 1-million-square-foot office building at 801 Cherry St. was filed with the Tarrant County Clerk’s Office on April 12. Pinnacle claims that Burnett Cherry Street LLC has defaulted on a $13 million loan issued in 2021. Burnett acquired the tower, which was built in 1983, for $137.5 million that same year, according to the Fort Worth Report.
Tarrant Appraisal District records show the property was valued at just over $104 million in 2023, per the Dallas Business Journal.
According to the filing, the date set for the sale of the building is May 7, meaning there is still time for an agreement to be struck that could avoid the foreclosure action. Significant obstacles stand in the way, however.
Mechanics’ liens to the tune of $1.6 million have been filed against Burnett as a result of its alleged failure to pay contractors for renovations that were done. Contractors have also filed lawsuits against Burnett’s parent company, Opal Holdings, in the amount of $1.6 million in damages, per DBJ.
On April 2, Opal filed a lawsuit against Pinnacle Bank, claiming the bank “has used … unfounded defaults or potential defaults to take over the overall management and operations of Burnett Plaza,” per DBJ. Opal also claims that the bank did not allow payment to construction companies for improvements that were made to the building. The firm further alleges that the bank directed the building’s tenants to pay it directly rather than Burnett.
Burnett Plaza Tower is just slightly taller than the 38-story Bank of America Tower in Fort Worth.
