Galleria Office Towers Sold, Market briefs

In Houston, Interra Capital Group has closed on the purchase of Park Towers, a 552,250-SF office portfolio in the Galleria/Uptown area.

JLL represented the seller, Regent Properties, and secured purchase financing on behalf of the buyer through Morgan Stanley.

The sales price was not disclosed, but was expected to be about $110 million or $200 per SF, as stated by Real Estate Alert.

The deal follows Interra Capital’s purchase of the 4.5 million-SF Greenway Plaza office campus last year.

“Park Towers is exactly the kind of opportunity Interra was built to pursue: a well-located, well-leased Class A asset in the heart of Houston’s Galleria with a strong, diversified tenant base,” said Jack Polatsek, Founder and CEO of Interra Capital Group.

Park Towers consists of two 18-story office buildings at 1233 and 1333 West Loop South. The towers were built in 1972 and significantly renovated between 2016 and 2022.

Amenities include a fitness center, tenant lounge and game room, conference facilities, executive boardroom, on-site wine storage, bike storage, and full-service deli. The portfolio is 89.5% leased.

JLL’s Rick Goings, Kevin McConn, and Jonathan Napper represented the seller, while Susan Hill arranged financing.

“Park Towers represented an exceptional opportunity to acquire a premier Galleria office asset with attractive in-place cash flow at a basis well below replacement cost,” said Goings. “With 89.5% occupancy and 6.3 years of weighted average lease term, the portfolio offers both stable cash flow and meaningful upside potential. Large deal activity is back; there have been 10 office asset sales over $100 million in the last 18 months alone.”

Transwestern will continue to provide leasing services for the new owner with Jack Scharnberg and Doug Little leading the assignment.

“We are pleased to be retained by Interra to continue leading the leasing at Park Towers,” said Scharnberg. “Having helped guide the property’s successful lease-up to stabilization, our team is uniquely positioned to build on that foundation. We look forward to working alongside Interra to strengthen the property’s market position and continue attracting high-quality tenants.”