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.
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In fact, 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.
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 sale of a parcel at 2840 Bookhout St.
First United was also the lender on this property. Both parties reached an agreement to avoid the sale.
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.
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 $127 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.