Dallas, Texas, January 30, 2026
In a notable shift in Dallas’ Harwood District, Harwood International has sold its seventh office tower, Harwood No. 3, to TPG. This transaction adds to TPG’s growing portfolio in the area, as they plan to invest $50 million in renovation efforts to enhance tenant experiences. Despite facing financial challenges, Harwood International retains a minority interest in the five-building portfolio totaling 1.2 million square feet.
Harwood International Sells Seventh Office Tower in Dallas
Dallas, Texas – In a significant shift within Dallas’ Harwood District, developer Harwood International has sold its seventh office tower in the area over the past year. The latest transaction involves the sale of Harwood No. 3 (2727 N. Harwood) to private equity firm TPG, marking the fifth acquisition by TPG in the district. Harwood International has retained a minority interest in the five-building portfolio, which encompasses 1.2 million square feet of office space. TPG plans to invest $50 million in modernizing these properties, aiming to enhance tenant and visitor experiences and meet the evolving needs of premium tenants. The renovation efforts are expected to elevate the portfolio to Class AA status upon completion.
Details of the Transaction
TPG’s acquisition of Harwood No. 3 was finalized in December 2025, with the deed recording filed on December 1. This purchase adds to TPG’s previous acquisitions in the district, including Harwood No. 2, Harwood No. 6, Harwood No. 7, and Harwood No. 10. The firm has outlined plans to invest $50 million in the properties, focusing on upgrading greenspaces, building infrastructure, common areas, and adding amenities such as tenant clubhouses, fitness centers, and food and beverage offerings. The renovation work is set to begin this year and continue through 2027 and beyond.
Harwood International’s Recent Financial Challenges
Over the past year, Harwood International has faced financial difficulties, leading to the sale of multiple properties in the Harwood District. In addition to the recent sale of Harwood No. 3, the company sold Harwood No. 2, Harwood No. 6, Harwood No. 7, and Harwood No. 10 to TPG. The firm also sold Harwood No. 4 to Spear Street Capital in April 2025 after defaulting on a loan. Furthermore, Harwood No. 1 was sold to Cawley Partners following a foreclosure auction in November 2025. These transactions indicate a significant restructuring within Harwood International’s portfolio.
Background on the Harwood District
The Harwood District, developed by Harwood International, spans 19 city blocks and includes more than 3 million square feet of Class AA office, residential, and retail space. The district has been a focal point for commercial real estate in Dallas, attracting various tenants and businesses. However, recent financial challenges faced by Harwood International have led to a shift in ownership and management of several properties within the district.
Implications for the Dallas Real Estate Market
The sale of multiple office towers in the Harwood District reflects broader trends in the Dallas real estate market, where developers are reassessing their portfolios and seeking strategic partnerships to navigate financial challenges. The involvement of private equity firms like TPG indicates a growing interest in revitalizing and modernizing existing office spaces to meet the demands of contemporary tenants. The planned renovations and investments in the Harwood District are expected to enhance the area’s appeal and competitiveness in the market.
Future Outlook
As TPG proceeds with its investment and renovation plans, the Harwood District is poised for significant transformation. The upgrades are anticipated to attract new tenants and businesses, potentially revitalizing the area and contributing to the overall growth and development of Dallas’ commercial real estate sector. The success of these initiatives will depend on effective execution and the ability to meet the evolving needs of the market.
Frequently Asked Questions (FAQ)
What is the Harwood District?
The Harwood District is a 19-block area in Dallas developed by Harwood International, featuring over 3 million square feet of Class AA office, residential, and retail space.
Who is TPG?
TPG is a private equity firm that has acquired multiple office towers in the Harwood District, including Harwood No. 3, Harwood No. 2, Harwood No. 6, Harwood No. 7, and Harwood No. 10.
What are the plans for the acquired properties?
TPG plans to invest $50 million in modernizing the five-building portfolio, focusing on upgrading greenspaces, building infrastructure, common areas, and adding amenities such as tenant clubhouses, fitness centers, and food and beverage offerings. The renovation work is set to begin this year and continue through 2027 and beyond.
What challenges has Harwood International faced?
Harwood International has faced financial difficulties, leading to the sale of multiple properties in the Harwood District, including Harwood No. 3, Harwood No. 2, Harwood No. 6, Harwood No. 7, and Harwood No. 10 to TPG, and Harwood No. 4 to Spear Street Capital. Additionally, Harwood No. 1 was sold to Cawley Partners following a foreclosure auction in November 2025.
What is the significance of these transactions?
The sale of multiple office towers in the Harwood District reflects broader trends in the Dallas real estate market, where developers are reassessing their portfolios and seeking strategic partnerships to navigate financial challenges. The involvement of private equity firms like TPG indicates a growing interest in revitalizing and modernizing existing office spaces to meet the demands of contemporary tenants.
Key Features of the Harwood District Transactions
| Property | Buyer | Transaction Date | Details |
|---|---|---|---|
| Harwood No. 3 (2727 N. Harwood) | TPG | December 2025 | Acquired as part of a five-building portfolio; Harwood International retains minority interest. |
| Harwood No. 2, No. 6, No. 7, No. 10 | TPG | September-October 2025 | Acquired by TPG; Harwood International retains minority interest in the portfolio. |
| Harwood No. 4 | Spear Street Capital | April 2025 | Sold after Harwood International defaulted on a loan; plans for multimillion-dollar upgrades announced. |
| Harwood No. 1 | Cawley Partners | November 2025 | Purchased following a foreclosure auction; plans for $10 million in upgrades announced. |
Deeper Dive: News & Info About This Topic
HERE Resources
Dallas Luxury Real Estate Firm Partners with HomeServices of America
Dallas-Fort Worth Homes Among Texas’ Most Expensive New Listings
Harwood District’s Tallest Tower Refinanced for $161 Million
Cawley Partners Acquires Harwood No. 1 in Uptown Dallas
Fields West Development Reaches Vertical Construction Milestone
OTO Development Acquires Hyatt House Dallas/Uptown
Author: STAFF HERE DALLAS WRITER
The DALLAS STAFF WRITER represents the experienced team at HEREDallas.com, your go-to source for actionable local news and information in Dallas, Dallas County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the State Fair of Texas, Deep Ellum Arts Festival, and Dallas International Film Festival. Our coverage extends to key organizations like the Dallas Regional Chamber and United Way of Metropolitan Dallas, plus leading businesses in telecommunications, aviation, and semiconductors that power the local economy such as AT&T, Southwest Airlines, and Texas Instruments. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
