Tuesday, January 29, 2013

Dallas’ historic Federal Reserve building sold

Downtown Dallas’ historic Federal Reserve Bank building has changed hands.
The 91-year-old Akard Street landmark was converted to a data center building in 1999 and had recently been for sale.
San Francisco-based Digital Realty Trust Inc. said Thursday that it purchased the 269,600-square-foot building to add to its North Texas holdings.
“This highly strategic building features large floor-plates, high ceilings and robust floor loading, making it an attractive alternative for customers in the Dallas area looking for high-quality data center space in the downtown Dallas market,” Michael Foust, CEO of Digital Realty, said in a prepared statement.
The property is 85 percent leased to eight tenants, according to Digital Realty.
The Dallas office of Holliday Fenoglio Fowler LP arranged the sale. Terms of the transaction were not disclosed.
Digital Realty has another downtown facility at 2323 Bryan St.
Earlier this month, the high-tech real estate firm announced it would build a data center in Richardson.
Digital Realty Trust is one of the largest developers of data center projects, with 103 properties in 31 markets worldwide.
The Federal Reserve Bank of Dallas moved in 1992 from Akard to a new complex on Pearl Street in Uptown.
The classical-style building is constructed of limestone with large columns and carved eagles on the exterior. There’s a 1950s addition on the east side.
The building has been designated a Dallas landmark.
The 1914 decision to locate the regional Federal Reserve bank in Dallas is considered one of the most important economic events in the history of North Texas.
Dallas won out over Houston, New Orleans and Austin in its selection as the site of the new 11th district bank. The move solidified the city’s key role as a financial and business hub for the region.
Dallas Morning News publisher George B. Dealey is widely credited with having led the effort to secure the new Fed bank for Dallas.
After some arm-twisting by Dealey and other local business interests, the Federal Reserve said it picked Dallas over New Orleans because “banking business in Dallas had more than doubled in the past decade while that in New Orleans had remained stable.”
The new Dallas Fed met for six years in local bank offices downtown until its building on Akard Street opened.
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