AT&T Inc. has sold its largest downtown Dallas office tower.

But the telecommunications firm plans to stay in the One AT&T Plaza building on a long-term lease.

The company is remodeling the skyscraper at 208 S. Akard St. to house its corporate executive offices, which are moving from San Antonio.

AT&T sold the 37-story tower to Icahn Enterprises, a New York-based investment firm, a spokesman for the company confirms.

Icahn Enterprises is a master limited partnership headed by chairman Carl Icahn, the well-known investor.

The company has holdings in the investment management, automotive, metals, real estate, and home fashion industries.

Built in 1982, the white stone and glass skyscraper contains more than 1 million square feet of office space.

Terms of the transaction were not released. The building is valued on tax rolls at almost $60 million.

Such sale and lease-back agreements are common among corporations.

"We've done this with many, many of our major buildings," AT&T spokesman Walt Sharp said Monday.

"We don't see ourselves in the real estate business.

"We'd rather invest that money in technology or other things that bring greater value to our shareholders."

AT&T is moving about 700 people from San Antonio to downtown Dallas as part of its big relocation.

Most of the workers will go into 17 floors that are being refurbished in One A&T Plaza.

AT&T owns several downtown buildings along Akard and Jackson streets.

Downtown business leaders see the purchase by Mr. Icahn's group as a positive move for the central business district.

DowntownDallas CEO John Crawford said the building acquisition is "another significant commercial transaction, and we added a prominent investor and landlord to a growing list of those taking advantage of the momentum in downtown Dallas."