Parkway, a privately owned, fully diversified real estate investment, operations and management firm, has acquired two premier class A office properties in Houston from its previous partners in an all-cash transaction.
Consisting of more than 3 million square feet, the deal marks one of the largest real estate transactions in the United States, year-to-date. Eastdil Secured, a global real estate investment bank, served as the sole adviser to the seller in the sale.
The Houston assets include Post Oak Central, an iconic three-building, mixed-use development with 1.2 million square feet of premier class A office space and 90,000 square feet of pedestrian-oriented retail, and CityWestPlace, a 39-acre campus in Houston’s Westchase District with a total of nearly 1.5 million rentable square feet.
CityWestPlace was fully renovated in 2020, and in 2022, Parkway was awarded the Houston Office Leasing Brokers Association's “Deal of the Year” for Bechtel Energy's 15-year lease at CityWestPlace 3 and 4.
Parkway said the strength of the submarkets, the institutional mix of the global tenant base and the redevelopment potential of Post Oak Central were contributing factors in the firm's decision to acquire the assets. Parkway will continue to operate both properties. Midway, Parkway's development partner, will oversee the redevelopment of Post Oak Central and the continued development of CityWestPlace.
BY KALI PERSALL, Institutional Real Estate, Inc.