Parkway Inc., a REIT spinoff formed after the company's recent $2B merger, plans to sell a 49% interest in Houston's Greeenway Plaza and nearby Phoenix Tower for $512.1M, the Houston Business Journal reports.

A joint venture of TH Real Estate, Silverpeak Real Estate Partners and Canada Pension Plan purchased the stake in a deal valued at approximately $210/SF for the 5M SF portfolio. Parkway will serve as a general partner and retain property management and leasing services for the new JV. Parkway is expected to net $315.8M.

In a press release, Parkway CEO James Heistand said the move accomplished several objectives. "First, we have established a great partnership with three well-capitalized and highly regarded institutional investors that share our view of the long-term resiliency of the Houston market and the expectation of an eventual recovery in Houston office fundamentals. Second, this transaction helps to mitigate risk in a single office campus that represents 57% of ourc ompany's overall square footage. And finally, with approximately $315.8M of expected net proceeds to Parkway, this joint venture will supply us with additional capital to immediately strengthen our balance sheet while providing us the flexibility to further diversify the portfolio through future acquisitions as the Houston market recovers."