Monday , 1 June 2020
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Houston Office Property Sells for $124 Million

HOUSTON – Parkway Properties purchased Phoenix Tower, a 626,000-sf office building in Houston’s Greenway Plaza area, for $123.8 million, or $198 per square foot.

Phoenix Tower was built in 1984 and fully renovated in 2011. It is a LEED Gold Certified, 26-story, Class A office tower that sits atop an eight-story parking garage. The building is currently 84.5% leased with an average in place net rent per square foot of $14.03. Phoenix Tower is expected to generate a 2013 estimated cash net operating income yield of approximately 6.0%. Parkway will own 100% of the asset and intends to place a secured first mortgage on the property totaling approximately 65% of the purchase price.

Jared Chua, Bernard Branca, and Russell Ingrum of CBRE arranged the transaction on behalf of the seller, FSP Phoenix Tower Limited Partnership.

“The sale of Phoenix Tower is further evidence of widespread investor interest in high-quality assets within the Houston market. The resiliency and strength of the city’s economy, combined with attractive underlying office market fundamentals, has led to Houston being elevated to one of the leading destinations for office investment by investors globally,” added Bernard Branca, Senior Vice President with CBRE.

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