HOUSTON — Parkway Inc. has completed the sale of a 49 percent interest in its Greenway office portfolio for $512 million, equating to approximately $210 per square foot.
The transaction covers a 5 million-square-foot, 11-building office campus located near Buffalo Speedway and the Southwest Freeway inside Houston’s Inner Loop. The portfolio comprises the 10-building Greenway Plaza complex plus the adjacent 630,000-square-foot Phoenix Tower. Greenway Plaza remains one of Houston’s most prominent and resilient submarkets.
Three institutional investors — affiliates of TH Real Estate, Silverpeak Real Estate Partners, and the Canada Pension Plan Investment Board — acquired the 49 percent stake and established a joint venture to own that interest.
As part of the deal, the joint venture assumed an existing mortgage on Phoenix Tower totaling $75.9 million.
In addition, the joint venture secured a new mortgage loan from Goldman Sachs totaling $465 million, which is secured by the Greenway Plaza properties. HFF served as the financing arranger for the transaction.
Parkway is a real estate investment trust headquartered in Orlando, though all of its assets are located in Houston. The company was formed last year following a merger involving Cousins Properties.