Parkway And Midway Call It Quits On Combined Company
Parkway and Midway confirmed they are going their separate ways after a year of Parkway Property Investments and Midway partnering to form a new combined company.
Houston-based Midway and Orlando-based Parkway announced their intention in May 2023 to operate under what both companies called a “refreshed Parkway brand,” while Midway continued to operate under its established name.
The companies issued a joint statement Thursday specifying that Midway sold its interest in Parkway Ventures back to Parkway, giving Parkway full control of the venture.
“[Midway] will bring its property operations back in house,” the statement said, according to HBJ.
“Parkway and Midway are proud of what we have accomplished since the outset of our venture and are even prouder of the commitment and dedication shown by our teammates. We have communicated this to our teammates and are presently working through the next steps for this transition. We look forward to what the future holds for both Parkway and Midway and will remain partners in the assets we own together.”
The Houston Business Journal reported, citing unnamed sources, that Parkway also implemented a round of layoffs in its Houston office this week, which was related to the split with Midway.
Parkway disputed that it had laid off any staff an email to Bisnow, though it declined to comment on questions about whether it had notified staff of upcoming layoffs or planned future layoffs. The HBJ later amended its story to say that while the company denied imposing layoffs “sources close to the company said a number of employees have been told their employment might not be necessary after the separation.”
Midway is a development company known for major mixed-use districts, including CityCentre, a 2M SF mixed-use walkable urban development in Memorial City where it is developing a new 320K SF office tower. It is also developing East River, a 150-acre tract on Houston’s east waterfront near Downtown.
Parkway owns, operates and manages primarily office properties in Sun Belt markets. It had been expected to bring expertise in raising capital and finding national property investment opportunities, according to the HBJ.
The firms planned to work together to increase investment and expand ownership and operations across the Sun Belt region and beyond, a 2023 news release stated. The companies together acquired two major Houston office assets and secured a 65K SF headquarters lease for Orion Group Holdings at East River.
In November 2023, a co-CEO of Parkway and an executive vice president of Midway, Parkway’s exclusive development partner, left their respective companies.
The HBJ reported that the legacy Midway company saw several property management employees leave to join BKR Real Estate Management, a Houston-based real estate company launched by the Gordy family to develop and manage its properties.
UPDATE, DEC. 20, 11:15 A.M. CT: This story has been updated to reflect a statement from Parkway refuting that it has already laid off staff.
