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Exxon Mobil's XTO Energy to Sell its Last Office Tower in Downtown Fort Worth

XTO Energy is Upgrading the Adjacent Office Building for its Continued Regional Operations
June 7, 2018
XTO Energy Inc., a subsidiary of Irving, TX-based Exxon Mobil, which is moving its headquarters to Houston this summer, is selling off its second-to-last building in downtown Fort Worth, TX.

XTO Energy plans to sell its 24-story, 185,757-square-foot office building at 714 Main St. after deciding to consolidate its remaining North Texas operations at the adjacent XTO-owned office building at 711 Houston St.

The tower at 714 Main last traded to XTO Energy in 2007, with the energy company renovating the 1920s-era building three years after the acquisition. Terms were undisclosed, however, the Tarrant Appraisal District last valued the tower at $20.7 million.

The property is expected to get a lot of interest from would-be investors as the marketing brochures hit desks this week, said Ryan Matthews, an executive vice president in Jones Lang LaSalle's Fort Worth office.

"This asset has a lot of optionality to it," Matthews told CoStar News. "It could be a lot of different uses. It is very appealing for another office user because of its Main Street address and downtown location, but it could also be on the radar of a lot of hospitality developers or developers looking for an iconic residential project."

Matthews is leading the charge on marketing the office tower. XTO Energy is upgrading the neighboring building along Houston Street in downtown Fort Worth to outfit it for the remaining 350 employees expected to remain in the region.

"With this building going on the market, XTO has determined the building it will occupy moving forward," Matthews told CoStar News. "This isn't a lease-back disposition, and XTO Energy will vacate it [714 Main] at some point by the end of the year."

He added this downtown Fort Worth building will likely be XTO Energy's last significant property to sell off as part of its North Texas portfolio. Investors have already begun inquiring about the property, which Matthews said makes him feel there is going to be "good momentum" in the potential sale of the property.

Moving forward, XTO Energy's offices will occupy the 1910-built Bob R. Simpson Building at 711 Houston St. The 108-year-old building was last renovated in 2005.

This year, XTO Energy plans to move its headquarters and more than a thousand employees to Exxon Mobil's sprawling 385-acre campus near Houston. The phased consolidation is expected to wrap up in mid-2020.

Recently, JLL helped XTO Energy sell the Petroleum Building at 201 West 6th Street to the ownership group behind Sundance Square in the city center. The brokerage firm also plans to finalize the sale of the WT Waggoner Building at 810 Houston St. to a new owner by the end of the summer.

Candace Carlisle, Dallas-Fort Worth Reporter  CoStar Group   
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