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Four years after buying the gleaming 20-story office tower near downtown Fort Worth from Pier 1 Imports, there’s talk that Chesapeake Energy may be looking to sell the high-profile property.
Chesapeake’s top local executive, Julie Wilson, was said to be too busy to return phone calls this week, but she did say in an e-mail response to questions that Chesapeake Plaza “hasn’t been sold” and “isn’t listed for sale.” However, Wilson, vice president for urban development, did not answer questions on whether the building is being shown to potential buyers despite not being technically listed for sale, whether anyone has looked at the building or whether any offers have been made. Local real estate brokers say the Class A office building is an attractive property to investors, and they expect offers to be made amid Chesapeake’s debt problems and need to sell assets. In February, the company said it wants to raise $10 billion to $12 billion selling assets this year. Pier 1 Imports leases the bottom half of the building, and if that lease remains, the building is even more attractive to investors. Pier 1 spent $90 million to buy the land and build the office tower, which opened in 2004. Oklahoma City-based Chesapeake paid $104 million for the property at 100 Energy Way, formerly 100 Pier 1 Place. At the time of the sale, Chesapeake said it would move as many as 400 employees into the top half of the building. Chesapeake has a $55 million mortgage with CLG Hedge Fund in Plano, which is due June 12, 2014, according to deed records. The Tarrant Appraisal District values the property at $62.7 million, down from $72 million in 2009, records show. Chesapeake is no longer leasing 70,000 square feet of office space on the top floor of the downtown parking garage that serves The Tower condominiums at Fifth and Taylor streets. That space was mostly used by Texas Midstream Gas Services, an affiliate that Chesapeake is selling. Chesapeake could make a dent in the asset sales if it gets the asking price on 25 Texas properties it does have up for sale — $1.1 billion total. They include the 29-acre former site of Bunge Oil in the Stockyards, with an asking price of $6.3 million. Also listed are the 2,905-acre Ormsby Ranch in Johnson County, $24.5 million; 49.5 acres at 1800 E. Fourth St., $14 million; and 21.3 acres at Texas 114 and Carroll Street in Southlake, $10.2 million. Chesapeake’s board has come under fire in recent weeks for corporate governance issues related to CEO Aubrey McClendon’s personal financial activities. In April, Reuters reported that McClendon borrowed $1 billion to buy stakes in the company’s wells, including from an investment group that was negotiating to buy other assets from Chesapeake. Last week, shareholders voted to oust two board members. Boost for Casino Beach The developer who has proposed redeveloping Casino Beach on Lake Worth into an entertainment and recreational venue has received a boost from Fort Worth. This week, the City Council approved a 20-year economic development agreement that will grant Patterson Equity Partners in Arlington a little more than $1 million annually. The city said its total commitment will not exceed $20.3 million, with the money aimed at helping pay for public improvements. The money will come from the city’s mineral leases at Lake Worth. Councilman Dennis Shingleton, whose district includes the area, said the plan “is a great economic project for Fort Worth. We’re bringing it back,” he said of Casino Beach. The Lake Worth Alliance neighborhood group shares the enthusiasm for the project, President Joe Waller said, but fears that selling city property to the developer could set a bad precedent. He said the agreement Patterson reached with the city “came quickly.” “It’s a positive thing we’re doing. Casino Beach is an area all of us thought should be commercially developed,” Waller said. “The transparency of this process is what I’m concerned about. This is a small piece of land and it needs to be developed. But for other land around the lake, we need to be careful.” Casino Beach, on the west end of the Jacksboro Highway bridge, was once the site of a popular amusement park and dance hall. Patterson is proposing a mix of restaurants, shops, a concert hall and a beach for swimming. Sandra Baker, 817-390-7727 sabaker@star-telegram.com Scott Nishimura, 817-390-7808 snishimura@star-telegram.com Barry Shlachter, 817-390-7718 barry@star-telegram.comLooking for comments?