Dillard Development Co. purchased the former Tennessee American Water headquarters building in downtown Chattanooga today for $1,325,000.
Photo Gallery
TVA sells surplus offices in downtown ChattanoogaShrinking utility consolidates in power headquarters
The Tennessee Valley Authority, which acquired the two-story office building at Broad and 11th Street in 2012, sold the unused building at a public auction this morning. Dillard emerged as the highest bidder for the 16,000-square-foot building among four bidders at today's auction sale.
Ryan Dillard, a partner in the Dayton, Tenn.-based construction and development firm, said the new owners will spruce up the building and try to find new tenants.
"It's a great building in a great location with its own parking," Dillard said. "We don't have specific plans currently, but we're excited about purchasing it."
Tennessee American occupied the building from 1978 to 2012 when it moved out and TVA bought the building, which is next door to the utility's 1.4 million-square-foot Chattanooga Office Complex.
Greg Hadden, a real estate manager for TVA, said the utility bought the structure three years ago when it was going to develop a mail and inventory processing center to serve its power headquarters. But those plans were scrapped.
"We can accommodate all of our Chattanooga staff within the Chattanooga Office Complex," Hadden said.
TVA sold the Edney Building at Market and 11th Streets earlier this year and sold its 10th Street garage last year.