HOUSTON—Located in the Greenway submarket, the Greenway Portfolio is comprised of 11 institutional-quality office properties totaling approximately 5 million square feet across 54 acres. The portfolio is in proximity to Houston's most prestigious residential neighborhoods with transportation links to the central business district and the Texas Medical Center.

A partnership between TH Real Estate and Silverpeak Real Estate Partners completed the acquisition of a 24.5% interest in Greenway Plaza and Phoenix Tower this week, in a transaction that values the Greenway Portfolio at $1.045 billion. TH Real Estate and Silverpeak are co-general partners of the 24.5% partnership.

“We are excited to partner with TH Real Estate, CPPIB and Parkway on this joint venture,” said Brett Bossung, a partner at Silverpeak. “The transaction provides a tremendous opportunity to acquire a large-scale landmark Houston office complex in a market where we see long-term growth.”

Canada Pension Plan Investment Board also completed the purchase of a 24.5% stake in the Greenway Portfolio. The seller, an affiliate of Parkway Inc., has retained a 51% stake and will continue to be responsible for the property management and leasing activities of the Greenway Portfolio.

“Houston is one of the most populous regions in the US and has strong economic activity driven by a variety of industries including energy, healthcare, education, logistics and transportation,” said Mike Fisk, managing director and head of strategic transactions at TH Real Estate. “It's a market that has demonstrated resilience throughout past cycles and historically been a strong total return performer relative to other gateway markets over longer time periods.”

TH Real Estate and Silverpeak are investing on behalf of the TIAA General Account, Silverpeak and other domestic and international institutional investors, two of which have invested through LaSalle Investment Management.

“Oil is at $45 to $50 a barrel today and the market has stabilized in a positive direction, but nothing says oil won't go down again,” Chris Burk, senior director of strategic transactions with TH Real Estate, tells GlobeSt.com. “That's the nature of commodities. What we liked was the timing in a cyclical low. It was a great moment to jump in. Who's to say there won't be volatility but we expect Houston to perform well in the near term.”

Holliday Fenoglio Fowler LP arranged the recapitalization and secured financing for the Greenway Portfolio.

Instant Insights /

Transaction Values Greenway Portfolio at $1.045B

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