February 15, 2008
Another prominent Downtown icon has changed hands in the ongoing efforts to revitalize the central business core -- the larger buildings surrounding the Plaza -- and spur development.
The Plaza Hotel today was sold to Mills Plaza Properties, a company controlled by Western Refining CEO Paul L. Foster, according to a press release.
In recent years, Foster has amassed a diverse Downtown real estate portfolio. Late last year, he purchased the Anson-Mills building, across the street from the Plaza. He owns two other Downtown edifices: the Blue Flame building, formerly the offices of the El Paso Natural Gas Company, and the Luther Building.
Mills Plaza Properties owns several parking areas, including the parking lot adjacent to Pioneer Plaza, behind the Plaza Hotel. The company is working with Plexxar Centre, which recently acquired the Centre Building. In November of last year, Foster moved the Western Refining corporate offices to the Centre Building, formerly home to the El Paso Electric Company offices.
County Commissioner Veronica Escobar, who is a member of Tax Increment Reinvestment Zone No. 5, which includes the Plaza Hotel, said the revival of the building would help increase revenues within the zone as its property value rises with investment.
“What El Paso has needed for a long time now are investors willing to put up their own money” to preserve and upgrade existing properties, Escobar said.
Brent D. Harris, managing partner of Plexxar Centre and vice president of Mills Plaza Properties, said the acquisition of building was in accordance with a vision Foster has for Downtown.
"From our side it's a strategic asset for what we're doing in the area," he said. Harris would not divulge what plans are in store for the 19-floor hotel, which was built by hotel magnate Conrad Hilton. It was designed by El Paso architect Henry C. Trost and has been was listed on the National Register of Historic Places.
Harris said the deal to purchase the Plaza Hotel from previous owner Mike Dipp had been ongoing for a few of months. Though Harris would not disclose the sale price of the building, the El Paso Central Appraisal District lists its total appraised value at $894,965.
Foster's company, Mills Plaza Properties, also is negotiating to purchase a portion of the Sun Metro transit plaza that surrounds the Plaza. The City Council voted to sell the ticket kiosk next to the Mills Building, across the street from the Plaza. [background]
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Editor's note: The news release that was sent earlier in the day follows
El PASO, TX – (February 15, 2008) – The Plaza Hotel, a downtown El Paso landmark since 1930, was sold on Friday to Mills Plaza Properties, a company controlled by Western Refining CEO Paul Foster. The hotel marks the fourth major building in the downtown area purchased by entities owned or controlled by the El Paso businessman.
In a released statement, Foster said, “I am very pleased that we were able to acquire the Plaza Hotel, and add it to the buildings we currently have in our downtown portfolio. This is an important El Paso landmark, with tremendous history and architectural significance. We hope to renovate and restore the Plaza so that El Pasoans will be proud to have it as part of a new and exciting downtown.”
Foster owns or controls the Blue Flame Building, formerly the offices of El Paso Natural Gas Company; the Mills Building, and the Luther Building – all downtown landmarks. Foster’s company, Mills Plaza Properties, also purchased several areas for parking, including the parking lot adjacent to Pioneer Plaza and the Plaza Hotel. Mills Plaza Properties is developing these properties in conjunction with Plexxar Centre, owner of The Centre Building.
The 19-floor Plaza Hotel was originally the first high rise Hilton Hotel built by Conrad Hilton. Designed by famous architect Henry C. Trost, it has been listed on the National Register of Historic Places since 1980. The hotel was previously owned by Plaza Properties. The building has been vacant since 2003.
Brent Harris, Managing Partner of Plexxar Centre and Vice President of Mills Plaza Properties, said that no definite plans have been finalized for the Plaza Hotel and the other Mills Plaza buildings, or the Centre Building. “We are not ready to make any announcements now about the hotel or the surrounding area,” said Harris. “We have not made any final decisions in that regard other than ensuring that those historic buildings will be restored to the extent possible and become integral parts of downtown. We are excited about our acquisitions and hope to be in a position to make some announcements in the coming months.”
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