Parkway closes on two Houston office assets

Parkway, a privately owned real estate investment company, has recently closed an all-cash acquisition of two major office assets in Houston. The properties, Post Oak Central and CityWestPlace, were acquired from Parkway's former partners. According to a press release, the redevelopment of Post Oak Central and the ongoing development of CityWestPlace will be overseen by Parkway's development partner, Midway.

The decision to acquire these assets was driven by several factors, including the strength of the submarkets, the institutional mix of the global tenant-base, and the redevelopment potential of Post Oak Central. Parkway stated that these factors played a significant role in their decision-making process.

Post Oak Central, located in Houston's Uptown business and entertainment district, is a mixed-use development designed by renowned architect Philip Johnson. It consists of three buildings, offering 1.2 million square feet of Class-A office space and 90,000 square feet of retail space. On the other hand, CityWestPlace is a 39-acre campus situated in Houston's Westchase District. It features a Class-A office complex comprising four buildings with a total of 1,473,177 rentable square feet.

Parkway's Co-CEO, Jayson Lipsey, highlighted the company's expertise in capital markets and investment acumen as key factors that enabled them to execute this large-scale and complex deal. Lipsey also emphasized the value brought by Midway's development and placemaking capabilities, stating that it will be transformational for the acquired assets.

With a transaction encompassing over three million square feet, this deal stands out as one of the largest real estate transactions in the United States this year. Parkway, formed in 2023 through a partnership between Parkway Property Investments and Midway, will continue to operate both properties. The collaboration between these two experienced firms aims to create a fully diversified real estate investment, operations, and management company.

Overall, Parkway's acquisition of Post Oak Central and CityWestPlace demonstrates the company's strategic focus on high-quality assets with significant growth potential. By leveraging their expertise and partnering with Midway, Parkway aims to enhance stakeholder value and drive growth in the Houston office market.