Canada's largest pension fund hired Eastdil Secured in 2022 to explore liquidity options for CityWestPlace, a 1.5 million-square-foot office campus in West Houston.
But the brokers faced a hard task trying to unload such a large asset given the headwinds in the office sector and broader capital markets.
After a six-month marketing process that highlighted local migration patterns and how employers have been relocating to West Houston over the past five years, Eastdil Secured had two strong offers for CityWestPlace.
The eventual buyers, Parkway and 3Edgewood, came out on top because they were willing to also buy another Houston office campus owned by Canada Pension Plan Investment Board — Post Oak Central in the Uptown-Galleria area. Post Oak Central was about to lose its longtime anchor tenant and represented a redevelopment opportunity for the new owners.
The $330 million deal marked one of the nation's largest multitenant office transactions by square footage in 2023. In recognition, the sale was selected as the winner of the 2024 CoStar Impact Award for sale/acquisition of the year in Houston, as judged by a local team of real estate professionals familiar with the market.
About the Deal: Parkway and 3Edgewood, the firm led by former Phoenix Suns owner Robert Sarver, closed the all-cash deal in September for the seven buildings across the two campuses that comprise nearly 3 million square feet. Parkway will continue to operate both properties, and Parkway's development partner, Midway, will oversee the redevelopment of Post Oak Central and the continued development of CityWestPlace.
What the Judges Said: “This mega-deal, marking one of the largest U.S. office investment sale transactions in 2023, promises an exciting new chapter for these prominent office campuses," said Ariel Guerrero with Avison Young.
They Made It Happen: Parkway executives involved in the deal included CEO Jayson Lipsey, Chief Operating Officer Matt Mooney, Co-Executive Chairman Jim Heistand, Co-Executive Chairman Brad Freels and Vice President Kevin Freels. Eastdil Secured's K.C. Scheipe, Elizabeth Malone, John Becker, Jeff Johnson and Bryce Beecher represented the seller.