One of the largest office towers in downtown Dallas, Harwood Center, is set to be auctioned online with a starting bid of $10 million. The 36-story building at 1999 Bryan Street covers 735,000 square feet and is currently only 47 percent leased. Bids for the property are due by October 15 through the Marketplace platform.
CW Capital, the current owner, acquired Harwood Center after a foreclosure auction in 2021 with a winning bid of $80 million. Fortis Property Group previously owned the building, having purchased it in 2006 and investing $10 million in renovations five years later.
The value of Harwood Center has declined significantly over the past decade. In February, an appraisal valued it at $51.2 million, which is about 41 percent of its $124 million valuation from 2014. The Dallas Central Appraisal District places its value at $45.4 million.
Key tenants include Jacobs, which has its global headquarters in the building, as well as Omnicom Management and the General Services Administration. The tower was built in the early 1980s and is zoned for mixed-use redevelopment, allowing for potential residential or hotel conversions. It is located near public transit options such as the St. Paul DART station and M-Line trolley and offers more than 1,300 parking spaces.
Transwestern’s Mike Hardage, Stephen Simon, and Steve Pumper are handling marketing for the property.
In addition to the main building, a separate listing by Colliers offers a 0.16-acre parcel beneath Harwood Center with ownership of a ground lease that expires in 2077. This land generates an annual rent payment of $65,232.
Downtown Dallas faces high office vacancy rates compared to other parts of Dallas-Fort Worth. Older buildings from the 1980s have struggled to retain tenants who increasingly seek newer offices with modern amenities and better locations. Uptown Dallas has seen more success attracting major tenants and new development projects.
For investors considering Harwood Center, its current vacancy could represent an opportunity for redevelopment or conversion into other uses.
