A second Harwood International office property is facing foreclosure less than three months after the firm saved Saint Ann Court from auction with a last-minute recapitalization.
The local developer defaulted on an $80 million mortgage tied to Harwood No. 4, a 20-story office building at 2828 North Harwood Street, according to Roddy’s Foreclosure Listing Service. Square Mile Capital, which merged with USAA Real Estate in 2023 to become Affinius Capital, provided the loan in 2019.
The auction is scheduled for Tuesday morning.
The 221,000-square-foot Harwood No. 4 was built in 2000. The debt works out to $363 per square foot. The property was valued at $80.8 million last year, records show. Law firm K&L Gates signed a deal last summer to occupy 23,000 square feet at the property.
Harwood could avoid losing the property, as it did with Saint Ann Court earlier this year. That 25-story office building at 2501 North Harwood Street was set to be auctioned on Jan. 7, but Harwood reached a deal with Life Company to recapitalize the property. With the fresh financing, Harwood repaid its $138 million mortgage.
Regardless, the foreclosures indicate Harwood International, one of Uptown’s largest office property owners, is struggling to pay its debts.
This comes as Harwood embarks on its latest development, a speculative office tower known as Harwood No. 15. The 24-story office building will be located on Wolf Street near Harry Hines Boulevard.
Trouble at the company could rock the area becoming known as the headquarters of “Y’all Street” and provide space for new office operators to gain a foothold in the hot submarket.
Uptown will be the recipient of $1 billion in investment via NorthEnd, a Hunt Realty project that will include a $500 million campus for Goldman Sachs, and Parkside Uptown, a Pacific Elm building that will house Bank of America.
Harwood didn’t respond to TRD’s request for comment in time for publication.
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