By Staff report @ Dallas Business Journal
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May 7, 2018, 12:32pm
A tower on AT&T’s corporate campus is expected to draw international interest as it hits the market.
CoStar Group first reported that the tower’s owner, IEP Dallas Inc., has hired CBRE to market One AT&T Plaza, also known as Whitacre Tower, as well as AT&T’s (NYSE: T) long-term lease in the building.
Located at 208 S. Akard St., One AT&T Plaza is the only property within AT&T’s four-building headquarters not owned by the Dallas telecom. IEP, which purchased the 37-story, 965,800-square-foot building in 2008, is an affiliate of New York’s Icahn Enterprises LP, headed by investor and billionaire Carl Icahn.
IEP’s purchase of the building was structured as a sale-leaseback deal. AT&T’s lease at the tower runs through 2030.
“AT&T owns all of the buildings in our downtown Dallas campus, except Whitacre Tower, which is owned by Icahn Enterprises,” an AT&T spokesman told the Dallas Business Journal. “If building ownership changes, it won’t impact our lease agreement.”
Though IEP acquired the building for $60.1 million, CoStar reports that AT&T’s long-term lease could add $278 million to the property’s value.
And thanks to AT&T’s credit rating, the property could garner interest from international and domestic investors, CoStar added. S&P Global Ratings has awarded AT&T a rating of BBB+, while Fitch Ratings has given the company an A-.
AT&T announced plans in October 2016 to spend $100 million redeveloping its downtown Dallas headquarters, with the aim of creating a tech-centric, urban corporate campus that will help attract 1,000 new employees.
Once completed, the 2-million-square-foot complex will include entertainment venues; landscaping; and well-lit, wide sidewalks. It will have room for up to 7,000 workers, CoStar reported.
The campus will also be renamed the AT&T Discovery District. Construction is expected to be complete in late 2019.