Parkway Inc. has completed the recapitalization of its Greenway Plaza and Phoenix Tower office properties in Houston's Greenway market in a deal valuing the 11 buildings at $1.05 billion.
As reported, the Houston company has sold a 49 percent stake in the 5 million-square-foot portfolio for $512.1 million - 24.5 percent stakes to both a venture of TH Real Estate and Silverpeak Real Estate Partners and the Canada Pension Plan Investment Board, or CPPIB. HFF arranged the recapitalization.
It retains the remaining 51 percent stake and will continue to manage and lease the portfolio.
TH, the investment management affiliate of TIAA Global Asset Management, and Silverpeak invested on behalf of the TH general account as well as a number of institutional investors, two of which invested through LaSalle Investment Management.
The venture has assumed the existing $75.9 million mortgage against Phoenix Tower, which pays a coupon of 3.9 percent and matures in March 2023. It also got a $465 million loan against the remainder of the portfolio from Goldman Sachs. The loan, which HFF arranged, pays a fixed coupon of 3.753 percent and matures in five years.
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