Harwood International has lost another key property in Dallas to foreclosure, marking further challenges for the developer. First United Bank of Oklahoma took ownership of Harwood No. 1, the company’s first office project, following a foreclosure auction last week, according to the Dallas Morning News.
The seven-story building at 2651 North Harwood Street was sold for $27.2 million, or $257 per square foot. Built in 1984 originally for Rolex, this property began what would become the 19-block Harwood District in Uptown Dallas.
First United had provided a $37.45 million loan to Harwood International in 2020 but initiated foreclosure after the developer defaulted on payments, as indicated by county records. Currently, Harwood No. 1 is only about half leased.
This marks the second time this year that Harwood International has lost a property to foreclosure and is the third such event involving its assets overall. In April, Spear Street Capital from San Francisco acquired Harwood No. 4 after a similar default and plans significant renovations.
Earlier this year, Harwood managed to save Saint Ann Court from foreclosure through a recapitalization deal.
Another property at 2840 Bookhout Street, also linked to a First United loan, narrowly avoided foreclosure when an affiliate of Harwood filed for a temporary restraining order; both parties later agreed to postpone the sale.
Gabriel Barbier-Mueller leads Harwood International as it faces mounting debt and weak demand for office space in Dallas. Since late summer, four towers—Harwood Nos. 2, 6, 7 and 10—have been sold to TPG in deals totaling approximately 900,000 square feet. TPG also provided a $100 million loan secured by other holdings including the delayed construction of Harwood No. 15.
To address these financial pressures and stabilize its district spanning more than three million square feet of office, residential and retail space, Harwood has engaged Newmark to seek new equity and debt partners. The long-term plan envisions over eight million square feet of mixed-use development across Uptown Dallas.
