Interra Capital Group announced Friday that it has purchased the 4.5 million-square-foot campus in a high-visibility corridor near River Oaks and Upper Kirby.
Rather than a traditional sale, Interra Capital will assume about $416.2 million in debt tied to the distressed property, and contribute $15 million in cash, according to filings with Harris County District Court.
“Greenway Plaza is one of the most iconic and strategically important business campuses in Houston,” said Jack Polatsek, CEO of Interra Capital Group, in a statement. “This is a generational asset with unmatched scale, a premier infill location and tremendous long-term potential.”
The sale comes after Greenway’s prior owners —including 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.
A court-appointed receiver, Trigild Texas, chose Interra as the winning bidder out of six offers, writing in court filings that Interra’s offer was an “excellent value for the property, especially considering existing market conditions for commercial office buildings.”
The 1970s-era campus was once a trophy asset valued at roughly $1 billion about a decade ago, according to data from Bloomberg CMBS.
Interra Capital hinted at a long-term repositioning of the campus, though it was not immediately clear whether that would include renovations.
However, Interra has already selected CBRE to lead leasing efforts, focusing on tenant retention, new leasing and broader market positioning, according to a release.
“This acquisition is about stewarding a campus that has played an important role in Houston for decades and repositioning it for the future,” said Anita Kundaje of Interra Capital Group. “We see tremendous opportunity to unlock value through disciplined execution, creative vision, and a deep commitment to the market.”