Interra Capital Group announced its acquisition of Greenway Plaza, a 53-acre, approximately 4.5 million-square-foot mixed-use office campus in Houston.
The terms of the acquisition were not disclosed by the company. However, the Houston Chronicle reports that instead of a traditional sale, Interra Capital is assuming approximately $416.2 million in debt tied to the financially distressed property and will also contribute $15 million in cash. The prior owners of the property – which included Canada Pension Plan Investment Board, Nuveen Real Estate and Silverpeak Real Estate Partners – defaulted on a $465 million loan tied to the property about four years ago.
In a press statement, Interra Capital Group said it would pursue “an active ownership and asset management strategy focused on operations, tenant engagement, leasing execution, and long-term repositioning.” The property is roughly 57% occupied. CBRE (NYSE: CBRE) was appointed to lead leasing at Greenway Plaza.
“Greenway Plaza is one of the most iconic and strategically important business campuses in Houston,” said Jack Polatsek, CEO of Interra Capital Group. “This is a generational asset with unmatched scale, a premier infill location, and tremendous long-term potential. We are proud to acquire Greenway Plaza and are committed to making the investments necessary to enhance the campus and strengthen its position as one of the market’s leading business destinations.”
Photo courtesy of Lincoln Property Company
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