The new owner of several Harwood district towers has taken out a loan of more than $115 million, as the company works to transform the office high-rises.
A partnership affiliated with private equity firm TPG took out a $115.5 million loan from lender CB Admin Agent LLC in mid-September, Dallas County deeds show. The lender’s address in county records matches Overland Advantage, a middle-market direct lending platform formed by Wells Fargo and Centerbridge Partners.
The loan was backed by TPG’s Harwood No. 3 at 2727 N. Harwood St. and Harwood No. 7 at 2950 N. Harwood St. towers. TPG representatives did not provide additional details about the loan or its purpose. Overland Advantage did not immediately respond to a request for comment regarding the loan.
The TPG-led partnership owns five office towers in the Harwood District. Others include Harwood No. 2 at 2728 N. Harwood St., Harwood No. 10 at 2850 N. Harwood St., and St. Ann Court/Harwood No. 6 at 2501 N. Harwood St.
TPG acquired the properties late last year as the district’s developer, Harwood International, faced financial struggles that saw it lose control of seven buildings in a series of sales and foreclosures. Harwood International was founded in 1988. Gabriel Barbier-Mueller is the firm’s founder and CEO. Harwood has retained a minority interest as a co-investor in the portfolio.
TPG, which maintains dual headquarters in Fort Worth and San Francisco, announced earlier this year that it would make improvements to the properties.
Investments in the five towers include upgrading greenspaces, building infrastructure and common spaces, adding bespoke tenant clubhouses, fitness centers, and food and beverage offerings. Work has already begun on the properties.
The TPG group said in an August filing with the Texas Department of Licensing and Regulation that it planned to start an estimated $4 million of work at St. Ann Court. The initial work will cover the lobby, tenant space and a 12th-floor patio. Work is expected to finish in March. The firm plans to spend more than $12 million on improvements to the high-rise.
In late September, TPG said in a state filing that it would start similar work on Harwood No. 3. Construction is expected to begin this month and finish in April.
The five-building portfolio will become Class AA status after the redos. The work will begin this year and continue through 2027 and beyond.
“Since launching our partnership earlier this year, we have continued to see strong demand across the Harwood District,” the group said in a previous statement. “This renovation program reflects our continued investment in the district’s long-term success, enhancing these properties with best-in-class amenities and experiences that meet the evolving expectations of tenants while further elevating the district’s position as one of Dallas’ premier mixed-use destinations.”
The Harwood District covers 19 city blocks and includes more than 3 million square feet of class AA office, residential and retail space.
To date, Harwood has delivered 14 buildings in the area, representing 35% of the district.
Hardwood International previously said the area will continue to grow, eventually covering 8.1 million square feet of office, retail, hotel and residential development.