Greenway Plaza Deal: Parkway Finalizes $512 Million

Greenway Plaza in Houston.

In Houston, Parkway Inc. has finalized the sale of a 49 percent stake in its Greenway office portfolio for $512 million or $210 per SF.

Parkway sold off a stake in a 5 million-SF, 11-building office campus near Buffalo Speedway and the Southwest Freeway in Houston’s Inner Loop. It includes the 10-building Greenway Plaza development and the adjacent 630,000-SF Phoenix Tower. Greenway is one of the strongest submarkets in Houston right now.

Three institutional investors, affiliates of TH Real Estate, Silverpeak Real Estate Partners and Canada Pension Plan Investment Board, purchased the 49 percent stake in Greenway and created a joint venture.

The joint venture assumed the $75.9 million existing mortgage debt secured by Phoenix Tower.

Additionally, the joint venture placed a new mortgage loan from Goldman Sachs totaling $465 million secured by the properties in the Greenway Plaza. HFF arranged the financing.

Parkway, a REIT based in Orlando although every single one of its holdings are in Houston, was formed last year as the result of a merger involving Cousins Properties.