Galleria office towers Park Towers sell for estimated $110 million in Houston

Interra Capital Group has closed on the purchase of Park Towers, a 552,250-square-foot office portfolio in Houston's Galleria/Uptown area, according to a statement from JLL.

The property includes two 18-story office buildings at 1233 and 1333 West Loop South. The sales price was not disclosed, but Real Estate Alert reported the deal was expected to close at about $110 million, or roughly $200 per square foot.

JLL represented the seller, Regent Properties, in the transaction. JLL also secured acquisition financing for Interra Capital Group through Morgan Stanley, according to the brokerage.

"Park Towers is exactly the kind of opportunity Interra was built to pursue: a well-located, well-leased Class A asset in the heart of Houston's Galleria with a strong, diversified tenant base," said Jack Polatsek, founder and CEO of Interra Capital Group, in a statement.

The towers were built in 1972 and underwent significant renovations between 2016 and 2022. Building amenities include a fitness center, tenant lounge, game room, conference facilities, executive boardroom, on-site wine storage, bike storage and a full-service deli.

The portfolio is 89.5% leased, with a weighted average lease term of 6.3 years, according to JLL.

"Park Towers represented an exceptional opportunity to acquire a premier Galleria office asset with attractive in-place cash flow at a basis well below replacement cost," said Rick Goings, one of the JLL brokers who represented the seller. "Large deal activity is back; there have been 10 office asset sales over $100 million in the last 18 months alone."

Goings worked on the sale with fellow JLL brokers Kevin McConn and Jonathan Napper. Susan Hill arranged the financing, JLL said.

The purchase follows Interra Capital Group's acquisition last year of Greenway Plaza, a 4.5 million-square-foot office campus in Houston.

Transwestern will continue to handle leasing for Park Towers under the new ownership. Brokers Jack Scharnberg and Doug Little will lead the assignment.

"We are pleased to be retained by Interra to continue leading the leasing at Park Towers," Scharnberg said in a statement. "Having helped guide the property's successful lease-up to stabilization, our team is uniquely positioned to build on that foundation."

The sale is part of a run of large Houston office transactions. JLL said the region has had 10 office asset sales over $100 million in the past 18 months.