A New York investor has quietly taken possession of a skyscraper in downtown Dallas.
The 34-story 717 N. Harwood tower previously housed oil company Diamond Shamrock and the Dallas office of KPMG.
Since 2014, the downtown skyscraper has belonged to an investment partnership led by Austin businessman Nate Paul’s World Class Capital Group.
Last year, the building was threatened with seizure and put into bankruptcy.
Now, a buyer affiliated with Dalan Management of Manhattan has acquired the tower from bankruptcy, according to Dallas County records.
The transaction included debt of $76.8 million.
Built in 1980, the 717 N. Harwood building counts among its tenants Omnitracs, Active Network, Hilltop Securities and Reel FX.
World Class Capital has spent millions of dollars renovating the 850,000 square foot downtown building.
Lender JPMorgan Chase said in legal documents last year that the owners failed to repay more than $75 million in loans.
Investor Paul – who was once said to have a net worth of nearly $1 billion – has also lost properties in the Austin area.
Dalan Management was founded in 2003 and has completed over $2 billion in transactions in the New York area. The Company’s current holdings include over 50 properties with approximately 3,000 residential units and over 100 commercial spaces totaling 3 million square feet.
The owners of Dalan Management are also part of a group including SKW Funding and Bain Capital Credit that is targeting nationwide acquisitions of more than $1 billion in distressed real estate debt.
Last year, the investment group acquired $42 million in debt secured by a portfolio of office properties in Austin.
The 717 N. Harwood tower is one of three downtown office skyscrapers that has recently faced debt problems.
The nearby 40-story Bryan Tower was recently sold to a local developer after the skyscraper was seized by lenders.
And the 40-story Harwood Center on Bryan Street is also under the control of lenders.