(HOUSTON, TX and ORLANDO, FL) – Privately owned, full-service real estate firms Parkway Property Investments, LLC (“Parkway”) and Midway Holdings, LP (“Midway”) today announced that they have entered into a definitive agreement whereby the companies will form a new, fully diversified real estate investment, operations, and management firm. The new firm enables two nationally recognized firms with over 100 years of collective experience to share capital and complementary expertise. The firms will work together to increase investment and expand ownership and operations across the Sun Belt region and beyond, with a focus on creating remarkable places and sustainable assets.
“We believe the rapid and ongoing evolution in how people choose to live, work, and seek entertainment presents amazing opportunities for our combined resources,” said Jayson Lipsey, CEO of Parkway. “Midway’s extraordinary development and placemaking capabilities together with Parkway’s broad capital market expertise will provide the scale, efficiency, and financial strength to engage and respond proactively to these trends and drive enhanced stakeholder value through market cycles.”
“Parkway’s investment acumen, operational success, and corporate expertise has resulted in an extraordinary track record of performance that has enabled the company to attract, retain, and grow investment from institutional capital partners across the country,” said Co-CEO of Parkway. “Coupling Midway’s strength in creating uniquely transformational real estate projects and enduring investments, asset diversification, and talented team members with Parkway’s market breadth and capital relationships will act as a force multiplier for long-term value creation.”
The integration of Midway’s and Parkway’s complementary strengths will enable the new company to develop and operate on a level that would have been challenging for each firm to achieve independently. This collective expertise together with an enhanced scale and market presence positions the new company for accelerated expansion, investment, and innovation in talent, capabilities, and services.
“This is a transformational partnership that will enhance what both our companies are able to do for our team members, clients, investors, and communities,” said Brad Freels, Chairman and CEO of Midway. “We are excited to bring the strengths of our two firms together and leverage our talent, expertise, increased scale, and market presence to achieve our mission of creating enduring investments and remarkable places that enrich people’s lives."
Midway and Parkway share like-minded operating philosophies and are aligned on their commitment to maintaining a strong, values-driven corporate culture. Both companies have a shared history of investing in local communities, including through environmental stewardship and sustainability initiatives, and the combined firm will build on each company’s ongoing ESG efforts.
With a combined 45 million square feet of assets under management post-integration, including developments in progress, the new company will offer a comprehensive suite of specialized commercial real estate solutions including: Acquisitions and Dispositions, Asset Management, Investment and Development (in partnership with Midway), Accounting Services, Property Operations and Management, Construction Management, REIT Compliance and Governance, Mergers & Acquisitions, Marketing and Communications, Strategic Leasing and Advisory, and Portfolio Repositioning.
“Together, we are stronger and better positioned to drive meaningful market share gains, sustainable growth, and value creation,” Jim Heistand, Parkway’s Chairman. “We look forward to bringing our talented teams together to unlock the tremendous potential of this compelling new company.”
While Parkway has extensive experience and relationships throughout multiple U.S. markets, Midway’s strong reputation and portfolio have been concentrated in Texas. To leverage Parkway’s track record of successfully raising institutional capital for over 50 years, as well as its brand recognition across the Sun Belt, the new company will operate under a refreshed Parkway brand. Midway, founded in 1968, will continue to operate as a separate development entity under its established name and act as the combined company’s development partner.
The new combined firm, which will employ approximately 300 team members, will be headquartered in Houston, and will have people and/or assets in 13 markets across Texas, Florida, Georgia, Virginia, Arizona, Colorado, and California. The full integration of the Parkway and Midway teams is targeted for the third quarter of this year.
Upon full integration, Brad Freels and Jim Heistand will serve as Co-Executive Chairmen of the new firm’s board, and Jayson Lipsey will serve as Chief Executive Officers of the new firm. The remainder of the new company’s leadership team will include executives from both Midway and Parkway. A. Noni Holmes-Kidd will serve as Chief Legal Officer, Matt Mooney will serve as Chief Operating Officer, John Kosciulek will serve as Chief Financial Officer, and Pam Jesse will serve as Chief People Officer. Midway will continue to operate its development entity under current management.
For more information, please visit www.pky.com.
Houston-based Midway is a privately owned, fully integrated real estate investment and development firm that has provided the highest level of quality, service and value to clients and investors for over 50 years. Midway’s portfolio of projects completed and/or underway consists of more than 45 million square feet of properties ranges from mixed-use destinations to office, industrial facilities, and master-planned residential communities. Midway continues to develop projects of distinction, aesthetic relevance and enduring value for investors, clients, and the people who live, work, and thrive in the environment they create.
Parkway is a privately owned, full service real estate investment firm led by a team with a strong track record of investing in high-growth markets across the U.S. and across economic cycles. Parkway owns, operates, and manages institutional quality real estate assets throughout the Sun Belt region. In addition, Parkway identifies and structures acquisitions and provides best-in-class property and asset management, leasing, accounting, and construction management services. Parkway currently owns, operates and/or provides accounting services for approximately 27 million square feet of high-quality office properties located in attractive submarkets in California, Texas, Florida, and Virginia.