Uptown landlord Harwood International is quietly offloading buildings in its namesake district after a year marred by distress.
Deed records show Gabriel Barbier-Mueller’s Dallas-based firm has sold Harwood No. 2, Harwood No. 6, Harwood No. 7 and Harwood No. 10 to San Francisco-based hedge fund TPG. The sales were recorded in September, a few months after Harwood tapped Newmark to help it find equity partners and debt for the next phase of its 30-acre Harwood District.
The four properties total 892,000 square feet of Uptown office space.
Harwood No. 2, at 2728 North Harwood Street, is a 10-story, 178,000-square-foot property that was completed in 1996. It’s appraised at $58.3 million.
Harwood No. 6 (also known as Saint Ann Court) is a 26-story, 320,000-square-foot office building that opened in 2009 at 2501 North Harwood Street. It’s valued at $160 million.
Harwood No. 7 (also known as Frost Tower), at 2950 North Harwood Street, is a 22-story office property with 167,000 square feet of space. It’s appraised at $83.5 million.
The 22-story 227,000-square-foot Harwood No. 10, at 2850 North Harwood Street, was delivered in 2019. It’s valued at $120 million.
Neither Harwood nor TPG responded to a request for comment.
TPG also appears to be financing Harwood’s latest project, Harwood No. 15. It provided a $100 million construction loan for the 23-story, 340,000-square-foot office project planned for 3008 North Harwood Street. A state filing last November showed the project was expected to cost $120 million, with a projected completion date of June 2027.
Harwood said Jones Day is committed to a 73,000-square-foot lease at the new building. The law firm has leased space at Harwood No. 3 since 1999.
Harwood nearly lost Harwood No.6 to foreclosure in January but saved the building with a recapitalization deal.
In purchasing the property, TPG assumed the $105 million loan tied to the building from New York Life Insurance Company.
It was the first of three foreclosures Harwood has been hit with this year. Harwood handed back the keys to Harwood No. 4 after allegedly defaulting on an $80 million mortgage tied to the building. San Francisco-based Spear Street Capital took back that 221,000-square-foot property in a $73 million credit bid.
Harwood is facing its third office foreclosure this year with Harwood No.1, at 2651 North Harwood Street, heading to the auction block next month, according to Roddy’s Foreclosure Listing Service.
Harwood borrowed $37.45 million from First United Bank for the 105,550-square-foot property in 2020. The debt works out to $355 per square foot. The auction is scheduled for Nov. 4 at 10 a.m. at the Dallas County Courthouse. It’s possible that Harwood and First United could work out a loan extension to avoid the sale.
As its name suggests, Harwood No. 1 was the firm’s first office development, built in 1984 for Rolex. In April, the building was 54.1 percent leased.
Read more
Uptown landlord Harwood falters with third office foreclosure this year
What’s going on with major Uptown office landlord Harwood?
Harwood International unveils plans for 23-story Dallas office tower
