Downtown Dallas skyscraper scheduled for July foreclosure

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Another downtown Dallas landmark is facing foreclosure.

The 34-story 717 N. Harwood Tower is one of three high-rise buildings in downtown Dallas that have defaulted on payments, according to lenders.

717 N. Harwood was built in 1980 as the headquarters of the Diamond Shamrock oil company. The office tower was later renamed KPMG Center for its main tenant, the auditing company. KPMG moved in 2015.

The Harwood Street office tower has been owned by a company founded by Austin businessman Nate Paul’s World Class Capital Group since 2014.

World Class Capital spent millions of dollars renovating the 850,000-square-foot downtown building.

The renovations attracted large tenants including Omnitracs and Active Network, Hilltop Securities, and Reel FX.

But now the well-known skyscraper in Dallas is slated for a foreclosure auction.

Lender JPMorgan Chase set a foreclosure sale of the tower on July 6 and claims in legal records that the owners have defaulted on $ 75 million in loans.

Foreclosure is just the latest setback for investor Paul, who recently lost other real estate in the Austin area to lenders and has been scrutinized for his political ties.

Paul – once believed to be worth nearly $ 1 billion – caught media attention when his house and offices were raided by agents from the FBI and the Treasury Department in 2019.

And he’s been linked to recent corruption charges against Texas Attorney General Ken Paxton.

According to Austin media reports, more than a dozen of Paul’s companies have filed for bankruptcy protection.

The three Dallas skyscrapers at risk of loan sales are all on the northeast side of downtown.

Lenders have also filed foreclosure requests on the Harwood Center’s 36-story office tower and the nearby 40-story Bryan Tower.

All three buildings are in a block from each other and were in decline during the pandemic.

Lenders often put properties on foreclosure sale while continuing to work with borrowers on debt restructuring or sales.

It’s not uncommon for properties to see multiple foreclosure items over several months.

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