Midway, Lionstone Re-invest in GreenStreet

HOUSTON--Midway and Lionstone Investments have announced a new partnership on the mixed-use development GreenStreet in downtown Houston.

Officials with the firms say plans are under way to further enhance the pedestrian feel of the three-block, 570,000-square-foot development and to serve as an anchor to downtown Houston's shopping district along Dallas Street. Improvements include activating additional walkways to instill a more walkable and pedestrian feel along the three-city blocks.

“It's an extraordinary time in downtown Houston,” says Jonathan Brinsden, CEO of Midway. “The pace of development and capital investment is strong and steady, which underscores Houston's resilience in the current economy.

“Midway and Lionstone have a shared vision for downtown and our partnership will result in exciting developments over the next months and years.”

JLL Capital Markets helped to facilitate the formation of GreenStreet's new partnership. International director Tom Fish, managing directors Margaret Caldwell and Tom Podgorski and vice president Jonathan Paine led the effort.

“GreenStreet is an extraordinary real estate asset,” says Fish. “The property is located in the heart of downtown Houston's Central Business District, and provides a rare opportunity for investors to deploy capital into a premier urban mixed-use project that continues to show enormous potential and capital gains.”

The partnership comes at a time when momentum in the CBD is at an all-time high. The Downtown Management District is investing $16 million along Dallas Street that will see new street surfaces, vehicular and pedestrian lighting, sidewalk pavements and landscaping and overall enhance the sense of place in downtown Houston's Shopping District. Plans by Houston First will extend the pedestrian feel from Dallas Street toward the George R. Brown Convention Center where substantial renovations include retail, restaurants and a grand entrance to the building.

"We are extremely pleased to have GreenStreet as the first investment in our new value add fund,” says Tom Paterson, senior vice president and portfolio manager at Lionstone. “As downtown Houston evolves, we believe the environments demanded by its most highly productive people will also change. With its high level of amenities, its differentiated office space, and the coming hotel, we believe GreenStreet is well positioned to capitalize on these changing preferences.”

Midway is also partnering with luxury hotel management company The Valencia Group, for Hotel Alessandra, a 20-story luxury hotel that will open in late next year.