East Texas Business

By CINDY MALLETTE
Staff Writer

The signature building in Tyler’s skyline, the Plaza Tower, is under new ownership.

Taylor Burns, of Burns Commercial Properties, announced last week that The Genecov Group purchased the 19-story glass-and-steel building, the tallest structure between Shreveport and Dallas.

“The Genecov Group is optimistic about the future of downtown Tyler,” Burns said.

Burns assisted with the transaction between former owners Plaza Tower Inc. and The Genecov Group. His company manages the building, which contains in excess of 214,000 square feet of rentable space. The purchase price is confidential, he said.

David Traff, principal for Plaza Tower Inc., said Genecov approached his company with an agreeable figure, and that the building was never listed for sale.

“Genecov approached us to purchase the building, and we got a price we were looking for,” he said. “They’re going to be instrumental in the revitalization of downtown.”

Burns said Genecov decided to take over the building to capitalize on the city’s downtown efforts.

“Genecov management views the city of Tyler’s recent actions to improve the downtown area as a positive indicator,” he said. “The presence of the Smith County Courthouse and the Federal Courthouse also make this section of Tyler a strong draw for office tenants.”

He said Genecov considers this purchase a long-term commitment and plans to hire Studio B Designs to review possible building upgrades. David Wilson, vice president for Genecov, said the upgrades would be superficial only, and nothing about the major design would change.

Wilson said none of the tenants would be affected by the new ownership, and that Genecov would keep Burns Commercial Properties in charge of managing the building.

“Taylor’s company has been the main proprietor for 12 years, and has been doing an outstanding job,” he said.

The building’s tenants include five federal agencies that occupy 30 percent of rentable space. The largest leases include Bank of America, the U.S. Bankruptcy Court, the U.S. Attorney’s Office, Potter Minton, P.C., Mayo Mendolia and Starr law firm, and Squyres Johnson Squyres & Co. accounting firm. Burns said current occupancy is at more than 92 percent.

The purchase of the Plaza Tower is Genecov’s second major investment in recent months. It also bought the retail property at 1909 ESE Loop 323, which includes 108,000 square feet of space currently occupied by Ace Hardware and Hobby Lobby.

“We feel like Tyler, as a whole, is a very good place to invest,” Wilson said.

SOLD: The Plaza Tower can be seen in the distance in downtown Tyler.
((Staff Photo By Jaime R. Carrero))