Bank Takes Ownership of First Office Property Built by Harwood International
An Oklahoma-based bank has taken ownership of the first office property built by Dallas developer Harwood International.
First United Bank now owns Harwood No. 1, a seven-story, roughly 106,000-square-foot property at 2651 North Harwood St., according to deed documents provided to The Dallas Morning News.
The bank took ownership of the office building on the steps of the George Allen Courts Building in downtown Dallas on Tuesday. Its winning bid was $27.2 million. The Dallas Central Appraisal District values the office property at $25 million for tax purposes.
The property was built for watchmaker Rolex and opened in 1984, marking the start of the Harwood District.
Background of the Property
First United was the lender on the property, providing a $37.45 million loan to the Dallas developer in 2020 ― which Harwood subsequently defaulted on, county records show.
First United Bank and Harwood did not immediately respond to questions regarding the transaction.
Temporary Reprieve for Another Harwood Property
A second Harwood property set to be auctioned on Tuesday was temporarily spared.
Harwood-affiliated HIC Development XV, LLC filed a temporary restraining order in Dallas County on Monday to block the foreclosure sale of a parcel at 2840 Bookhout St.
First United was also the lender on this property and is seeking repayment of a $6 million loan. Both parties reached an agreement to avoid the sale
Financial Challenges Faced by Harwood International
Gabriel Barbier-Mueller‘s Harwood International has faced a series of financial challenges this year marked by foreclosures, sales and construction delays.
Harwood No. 1 is the second property that the Dallas developer has lost to foreclosure this year. Its No. 4 building was sold to Spear Street Capital in April after the Dallas developer defaulted. The San Francisco-based firm has plans for multimillion-dollar upgrades at the property.
The firm also sold four office towers to TPG, a private equity firm with dual headquarters in Fort Worth and San Francisco.
From early September to early October, TPG purchased Harwood buildings No. 2, 6, 7 and 10. Together, the properties total roughly 900,000 square feet.
Harwood No. 6, also known as Saint Ann Court, was sold after being saved from the brink of foreclosure earlier this year.
TPG also fronted the Dallas developer with a $100 million loan tied to various Harwood property holdings, including the delayed Harwood No. 15 office development.
Related
Delayed Construction Projects
Previous filings with the Texas Department of Licensing and Regulation show construction was set to begin on the 23-story tower in January.
The tower, at 3008 N. Harwood St., was to be completed in June 2027. Estimated construction costs were $120 million.
Harwood tapped Newmark earlier this year to secure equity and debt partners. The Dallas developer sought to recapitalize its office portfolio and the next phase of development within the Harwood District.
The district currently covers 19 city blocks and includes more than 3 million square feet of Class AA office, residential and retail space. The goal is to grow the district to cover 8.1 million square feet of office, retail, hotel and residential development.
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Conclusion
In conclusion, the takeover of Harwood No. 1 by First United Bank marks a significant development in the Harwood District. The financial challenges faced by Harwood International have led to a series of foreclosures, sales, and construction delays. As the district continues to grow and develop, it will be interesting to see how these changes impact the local real estate market.
Frequently Asked Questions
Q: What is Harwood No. 1?
A: Harwood No. 1 is a seven-story, roughly 106,000-square-foot property at 2651 North Harwood St., built for watchmaker Rolex and opened in 1984.
Q: Who took ownership of Harwood No. 1?
A: First United Bank took ownership of Harwood No. 1, with a winning bid of $27.2 million.
Q: What are the financial challenges faced by Harwood International?
A: Harwood International has faced a series of financial challenges this year marked by foreclosures, sales, and construction delays.
Q: What is the Harwood District?
A: The Harwood District currently covers 19 city blocks and includes more than 3 million square feet of Class AA office, residential and retail space, with plans to grow to 8.1 million square feet of office, retail, hotel and residential development.
