February 21, 2017
Parkway Inc. reached an agreement with TH Real Estate, Silverpeak Real Estate Partners, and Canada Pension Plan Investment Board to sell a 49% interest in Greenway Plaza and Phoenix Tower in Houston’s Greenway submarket. The Florida-headquartered Parkway will receive more than $512 million for the stake. The Greenway Portfolio consists of five million square feet, containing 11 office properties.
Parkway will serve as the general partner, and will also provide property management and leasing services for Greenway Plaza near Richmond Avenue and Buffalo Speedway, and Phoenix Tower at 3200 Southwest Fwy. The joint venture, and associated financing through Goldman Sachs, are expected to close in Q2 2017.
The recapitalization fulfills two objectives, according to James R. Heistand, president and CEO of Parkway. First, it brings in “three well-capitalized and highly-regarded institutional advisors that share our view of the long-term resiliency of the Houston market,” he said. Second, the transaction helps mitigate risk in a single office campus.
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