San Francisco-based real estate investor Spear Street Capital is about to unleash a multimillion-dollar renovation to a 25-year-old office tower near Uptown Dallas after buying it at a foreclosure auction.
Spear Street Capital acquired Harwood No. 4, a 20-story, 239,316-square-foot office tower at 2828 N. Harwood St. in Dallas for an undisclosed sum. The firm purchased the office tower on the steps of the George Allen Courts Building in downtown Dallas on Tuesday.
Spear Street Capital has brought in HPI Real Estate Services & Investments to lease and manage Harwood No. 4, according to HPI. HPI's Hunter Lee, Luke Aviles and Ben Cuzen will lead what is expected to be a multimillion-dollar renovation to add new amenities to the building.
HPI has already begun reaching out to architects to move quickly on bringing new amenities to the building by year's end, Cuzen, an executive managing director at HPI, told CoStar News.
"We're extremely bullish about the market, with there being a lack of new supply and the velocity and the size of office deals continuing to grow," Cuzen added.
CoStar Director of Market Analytics Bill Kitchens, who specializes in the North Texas office market, echoed the sentiment, saying he expects competition for newer office space to heat up as the region's pipeline tapers close to 10-year lows and construction starts remain muted.
"Available office space for newer buildings, three years or less, is declining, with tenants continuing to migrate to the highest-quality spaces in premier submarkets, including Uptown," Kitchens told CoStar News, adding that the latest reported lease volume is the highest level since the third quarter of 2023, driven by large deals.
Leasing in the Dallas-Fort Worth region began 2025 with strong results with 4.7 million square feet of new leases, based on preliminary results, he added.
Spear Street Capital is known in the Dallas-Fort Worth region for making Galatyn Commons rich with amenities before selling its holding in the four-building campus to a Singapore-based real estate investor in 2021.
The property owner also owns The Tennyson in Plano, Texas, a northern Dallas-area suburb, as well as two buildings in the greater Houston area, according to its website. Spear Street Capital did not immediately respond to emails and phone calls from CoStar News seeking comment about its latest acquisition.
Ownership change
Harwood No. 4's prior owner, Harwood International, confirmed the company no longer owns the property, saying it had run out of time to recapitalize the building. The office tower was last valued on the Dallas County tax rolls at $80.8 million.
"There has been a recent change in the ownership of 2828 N. Harwood Street,” Harwood International Chief Financial Officer Justin Burleson said in an emailed statement to CoStar News.
"We were in discussions with equity investors to recapitalize the property but ultimately ran out of time to finalize those arrangements," Burleson added. "As we are fully committed to the long-term stewardship and success of the Harwood District, we will work diligently to ensure a smooth transition for all parties."
The building is located in the Harwood District that comprises 19 city blocks developed by Harwood International that has been popular for office tenants. Leasing at the Harwood District reached a record level in 2024 with a total of 342,163 square feet of space being leased. The prior leasing record for the district was 328,000 square feet of space set in 2019.
However, Harwood No. 4 lost one of its major tenants when Dallas-based energy firm HF Sinclair exited more than 90,000 square feet of space in the building, which is currently less than 50% leased.
The amenities that Spear Street Capital is planning to add to Harwood No. 4 could include a fitness center, tenant lounge and coffee bar, according to HPI's Cuzen.