HOUSTON-Parkway Properties Inc., a Jackson, MS-based REIT, has purchased a 72,050-sf office building in the Greenspoint submarket for $9 million. An affiliate of Sacramento-based Panattoni Development Corp. is the seller.
The two-year old building, situated at 550 Greens Parkway, is 100% leased. Its lead tenant is Lennar Homes, which occupies 49,136 sf or 68% of the building. The tenant roster also includes Crescent Services Corp., Village Builders and Panattoni.
Steven G. Rogers, Parkway's president and CEO, tells GlobeSt.com that this is the REIT's 11th buy in town. Panattoni-Van Valkenburggh, JV is the official seller of record.
The 1.6 million-sf portfolio is riding at 98.8% occupancy and is comprised mainly of suburban office buildings. Rogers would like to see the right CBD building come to market. “The office market here is one of the healthiest in the United States,” he says.
But, it's not likely that the REIT will make another buy this year in Houston. “We are going to sit on our wallet for the rest of the year,” Rogers says.
The acquisition is a perfect match for Parkway's existing portfolio. “The building shows a strong initial yield of 10.6%, is already managed by our existing staff on a third-party contract,” Rogers says, “and is anchored by Lennar Homes, one of the largest builders and home financing providers in the United States.”
Parkway Properties is a home-grown REIT, founded in 1971 in Houston as Texas First Mortgage. In 1980, the operation shifted to Mississippi and was renamed to Parkway Properties. Today, Parkway owns 50 office buildings, with an aggregate 8.3 million sf, in 11 states.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
