Introduction to the Harwood Center
A half-empty downtown Dallas skyscraper is now for sale. The 36-floor Harwood Center at 1999 Bryan St. is up for auction with bids due Oct. 15. The Class A office tower is currently 47% leased, and bids start at $10 million, according to online commercial real estate auction platform Marketplace.
History and Current State of the Harwood Center
Built in the early 1980s, the property serves as the world headquarters for engineering firm Jacobs. The nearly 735,000-square-foot tower’s major tenants include Omnicom Management and the General Services Administration. The site’s zoning could allow new owners to convert the property to a mix of residential, hotel and office uses. The property was last renovated in 1996.
Location and Accessibility
The property is just north of the St. Paul DART rail station and is near the M-Line trolley. Harwood Center has more than 1,300 parking spaces. This strategic location provides easy access to various parts of the city, making it an attractive option for potential buyers.
Real Estate News and Market Trends
Dallas County records show COMM 2014-UBS5 Harwood Center, LLC as the owner. An address listed for the firm matches the real estate company CW Capital. Attempts to contact CW Capital were not immediately returned. The limited liability corporation took ownership after a foreclosure auction in 2021. The firm bid more than $80 million on the property, according to Dallas deed records.
Market Value and Appraisal
The Dallas Central Appraisal District estimates the value of the building at nearly $45.4 million for property tax purposes. Such estimates often trail market value. Vacancies in Dallas’ office market recently saw their first drop in five years, driven by Uptown’s strong performance. Nearly three-quarters of the metropolitan area’s 2.7-million-square-foot construction pipeline is in Uptown as it becomes the nucleus of Dallas’ financial industry.
Challenges and Opportunities
The area continues to siphon business away from markets like downtown. “Dallas CBD has one of the highest vacancy rates in the DFW area for office properties,” said Sriram Villupuram, a professor of finance and real estate at the University of Texas of Arlington. “The age of the buildings, which were built during the 80s building boom, is outdated for today’s employees. This makes it difficult for any new owner to lease a property without undergoing extensive renovations or redevelopment.”
Other Developments in the Area
Major Preston Center redo to bring new towers by 2028. A 17-story high-rise apartment tower and 12-story office building will highlight the mixed-use development.
Dallas firms eye $650M project in heart of Preston Hollow. Here are the plans. A 28-story hotel/condos tower highlights a larger mixed-use development coming to one of the city’s key intersections.
Conclusion
The sale of the Harwood Center presents a significant opportunity for investors and developers to acquire a prominent property in downtown Dallas. With its strategic location, ample parking, and potential for redevelopment, the Harwood Center could be transformed into a thriving mixed-use complex. However, the property’s high vacancy rate and outdated infrastructure pose challenges that must be addressed. As the Dallas real estate market continues to evolve, the fate of the Harwood Center will be closely watched by industry experts and potential buyers.
FAQs
Q: What is the current occupancy rate of the Harwood Center?
A: The Harwood Center is currently 47% leased.
Q: What is the starting bid for the auction of the Harwood Center?
A: The starting bid for the auction is $10 million.
Q: What is the estimated value of the Harwood Center for property tax purposes?
A: The Dallas Central Appraisal District estimates the value of the building at nearly $45.4 million.
Q: What are the major challenges facing the new owner of the Harwood Center?
A: The major challenges include the high vacancy rate, outdated infrastructure, and the need for extensive renovations or redevelopment.
Q: What are some of the potential uses for the Harwood Center under its current zoning?
A: The site’s zoning could allow new owners to convert the property to a mix of residential, hotel and office uses.
