Harwood International has lost ownership of its first Dallas office building, Harwood No. 1, following a foreclosure auction. First United Bank of Oklahoma took possession of the seven-story, 106,000-square-foot property at 2651 North Harwood Street after the developer defaulted on a $37.45 million loan issued in 2020. The building sold for $27.2 million, which equates to $257 per square foot.
Originally constructed in 1984 for Rolex, Harwood No. 1 was the starting point for what is now the 19-block Harwood District in Uptown Dallas. According to county records, the foreclosure was prompted by a loan default. Sources told The Real Deal that the building is currently only 54 percent leased.
This marks the second time this year that Harwood International has lost a property to foreclosure and is the third such event involving its holdings. In April, Spear Street Capital from San Francisco acquired Harwood No. 4 after a similar default and announced plans for significant renovations.
Earlier this year, Harwood managed to prevent Saint Ann Court from going into foreclosure through a recapitalization deal.
Another property at 2840 Bookhout Street—also tied to First United—was scheduled for foreclosure but avoided it when HIC Development XV filed a temporary restraining order and reached an agreement with First United to postpone the sale.
The company, led by Gabriel Barbier-Mueller, faces challenges due to increasing debt and weak demand for office space in Dallas. Since late summer, Harwood International has sold four towers—Harwood Nos. 2, 6, 7 and 10—to TPG in transactions covering about 900,000 square feet. TPG also provided a $100 million loan secured by several of Harwood’s properties including the delayed Harwood No. 15 project.
To address these issues and stabilize its holdings across more than three million square feet of office, residential and retail space in Uptown Dallas, Harwood has hired Newmark to seek new equity and debt partners. The long-term plan envisions expanding development within the district to over eight million square feet.
