TexasBank took control of a block of condos at Harwood International’s Bleu Ciel in Dallas in a foreclosure auction Tuesday, marking the first time Harwood’s distress extended beyond its office portfolio.
The lender, which provided Gabriel Barbier-Mueller’s Uptown firm a $30 million loan for the units in 2024, took back the properties in a $23.6 million credit bid, deed records show.
The mortgage was originally tied to 26 units at the 33-story condo tower, at 3130 North Harwood Street. Since the loan was provided, at least six units were sold, causing Harwood to be relieved of parts of its debt burden.
Bleu Ciel opened in 2018, meaning Harwood hasn’t been able to sell the remaining 19 condos for eight years. Deed records confirmed these units, which include multiple penthouse units, never changed ownership from Harwood.
The foreclosure comes on the heels of a catastrophic year for Harwood, one of Dallas’ most prominent development firms. Harwood gave up ownership of eight office properties in its signature 19-block Harwood District in 2025.
The firm faced foreclosures on three office properties last year, handing back the keys to Harwood No. 4 in April and Harwood No. 1 in November. San Francisco-based Spear Street Capital took back Harwood No. 4, at 2828 North Harwood Street, in a $73 million credit bid. First United Bank seized Harwood’s first development, at 2651 North Harwood Street, with a $27 million credit bid. Bill Cawley’s Cawley Partners bought the property on Dec. 30.
Harwood also quietly offloaded five Dallas office properties to San Francisco-based private equity fund TPG, which announced in January that it is Harwood’s recapitalization partner.
TPG now owns Harwood buildings totaling 1.2 million square feet of office space:
- Harwood No. 2, at 2728 North Harwood Street;
- Harwood No. 3, at 2727 North Harwood Street;
- Harwood No. 6 (also known as Saint Ann Court), at 2501 North Harwood Street;
- Harwood No. 7 (also known as Frost Tower), at 2950 North Harwood Street; and
- Harwood No. 10, at 2850 North Harwood Street.
TPG has plans to renovate the properties. According to a press release, Harwood retains a minority stake.
Harwood experienced another blow when Jones Day, which was supposed to anchor the upcoming Harwood No. 15, pulled out of the project late last year. The firm’s distress is a blemish on Uptown’s otherwise glowing office market. The submarket has been a reliable outlier in a region that continues to struggle with high vacancy rates. Uptown also boasts the highest rents of any submarket in Dallas-Fort Worth, with an overall average gross rent of $62.21 per square foot, according to a recent report from Partners Real Estate. The downtown-adjacent neighborhood has become synonymous with Y’all Street, with banks like Goldman Sachs and Bank of America selecting Uptown for expensive built-to-suit projects.
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