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News release

FT. Worth

Jones Lang LaSalle Brings Twin Tower Fort Worth Landmark to Market

City Place offers substantial value-add, upside, and redevelopment plays; May be purchased together or separately


FT. WORTH, MARCH 17, 2010 — Seeking to provide investors a significant opportunity in one of the best performing office submarkets in the Southwest, Jones Lang LaSalle announced today that it is marketing Fort Worth’s City Place, a 1.2 million gross square foot complex for sale or joint venture.  The four block former RadioShack headquarters has two towers, known as One City Place and Two City Place, along with the City Place Center, a low rise structure connecting them. Collectively the property offers 1.2 million square feet of office, retail and underground parking space. City Place’s distinct components may be purchased together or separately. The owner, The PNL Companies, will also consider offers to remain as a development partner and/or minority owner/operator.

Leading the Jones Lang LaSalle team on this assignment are Managing Directors John Alvarado, Jack Crews and Evan Stone.

“The ability to purchase the components of City Place either together or separately makes this an incredibly attractive opportunity for a wide spectrum of potential investors.  Investors seeking a core/value-add play with strong long-term cash flow in the office tower will be drawn to Two City Place.  Office or multifamily investors looking for an exceptional infill redevelopment will find what they are looking for in One City Place and City Place Center,” said Alvarado. 

Added Crews, “Fort Worth is now the 17th largest city in America and is projected to continue being one of the fastest growing major cities in the country. This central CBD complex is a solid long-term investment and potential investors can lock in low fixed-rate mortgages now available for moderate LTV loans.”

Two City Place is a fully renovated Class A tower offering 18 stories and 329,225 rentable square feet on the north side of the four-block complex.  Since PNL completed its shell renovation in April 2008, the tower has achieved a 78 percent occupancy level—with only 16% of the rentable square footage expiring before 2017.  Two City Place is the headquarters of a major publicly-traded independent energy company.  In the past several months, leasing activity has strengthened significantly with 3 leases completed and several more going to contract.

One City Place is a 19-story tower with approximately 501,320 gross square feet on the complex’s south side.  Currently vacant, the tower offers opportunities for development as office, hotel or luxury residential. PNL has full architectural plans available to convert the space to 176 luxury condominiums but deferred this conversion in 2007 due to the disruption in the credit markets. 

The City Place Center Block is a 215,320-square-foot low-rise structure connecting Two City Place and One City Place.  The former mixed-use retail and office block offers a dramatic central atrium, high ceilings and new glass on the second level installed in 2009.  The seller also has complete plans for this structure to be renovated into 106,000-square-feet of office and street-front retail and 402 parking spaces.

Adds Evan Stone. “City Place has more new development surrounding it than any comparable project in Fort Worth and is adjacent to Sundance Square, 16 blocks of carefully restored historical buildings that house retail, offices, restaurants, theatres, art galleries, residences and hotel rooms.  It is also located within the boundaries eligible for New Market Tax Credits, which could substantially enhance a residential conversion strategy.”

Jones Lang LaSalle Capital Markets is composed of a broad range of real estate investment debt and equity specialists, and corporate finance experts, working on all property types and in all the major national markets on behalf of major institutional and local investors and developers, as well as corporations.  The firm's Capital Markets professionals are highly skilled at pinpointing and tailoring the right capital solutions for each of these client's needs.  The Development and Asset Strategy team specializes in the sale of non-income-producing properties in their various forms from surplus buildings to raw land to entitled parcels and partially-completed subdivisions.  The Investment Sales teams assist investors in developing and executing asset recapitalization strategies for office, industrial, retail, multifamily, healthcare and seniors housing product. The firm’s Real Estate Investment Banking experts raise debt and joint venture equity for investors and developers, and provide derivatives structuring and loan sale advisory services.  The Corporate Capital Markets professionals help corporations develop and execute strategies that bridge their occupancy, capital deployment and financial reporting objectives for their facility portfolios.  The firm's Value Recovery Services assist clients affected by the current financial crisis by creating value while managing risks through evaluating operational and occupancy needs, assisting with challenged assets and liabilities on their balance sheets, providing receivership services, asset management, raising capital through sales-leasebacks and providing leasing and recapitalization strategies for distressed assets. In the past two years, the firm’s Capital Markets team handled $117 billion of transaction volume.
 
About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2008 global revenue of $2.7 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.4 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than $37 billion of assets under management. For further information, please visit our Web site, www.joneslanglasalle.com.
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