Plans For Condos Scrapped

FORT WORTH, TX - The once-planned condo tower in City Place in downtown Fort Worth is up for sale, but its owner says it would consider becoming a joint-venture partner in a deal to redevelop the 20-story building back into offices. "We are not looking to sell to another speculative developer," said David Porter, president of PNL Cos. "We're looking to lease, joint venture or sell to a major user. We'd rather not have it on the market at all. This is not a distress sale. We don't need to sell it. It only makes sense for a major user right now."

Putting the property on the block, however, further delays reopening Second Street between Taylor and Throckmorton streets. Work there involving the demolition of part of the former Fort Worth Outlet Square is tied to the redevelopment of the office tower.

Andy Taft, president of Downtown Fort Worth Inc., which supports the plan to return the street to the traffic grid, is taking the news in stride. "The economy is changing a lot of expectations we had just six months ago," Taft said. "The condition of the market today - obviously we have to understand there are going to be delays."

The Dallas-based developer bought the former Tandy Corp. headquarters and Outlet Square in December 2001. The 1.2 million square feet of space, including two 20-story office towers, stretches between Third and Weatherford streets and Throckmorton and Taylor streets.

PNL leased the space back to RadioShack Corp., formerly Tandy Corp., until mid-2005, but it didn't unveil its ambitious plans to redevelop the property into a residential, retail and office complex until December 2006.

Initially, plans called for 350 condos, but PNL reduced that significantly when it said it would turn the north tower, closest to Weatherford Street, back into offices because of market demand.

That building is now about 90 percent leased, with Range Resources as its largest tenant. A year ago, as a result of the nation's credit woes, lenders told PNL that money for condo developments was not available.

Because economic conditions have not improved, Porter said, PNL has decided to shelve the condo plans entirely and advance the project for office space. "Office is now the better use," Porter said. "The change is we've decided to make it available to the market now."

The property is listed through the Fort Worth office of Jones Lang LaSalle real estate brokerage. PNL also plans to turn most of the structures between the two towers into offices.

The developer had planned about 100,000 square feet for shops and restaurants but will now have only about 25,000 square feet for retailers. "Retail is getting more difficult in this market," Porter said. Tandy built the office towers in 1976 and 1978.