Blackstone Lines Up $140M Refi for Houston’s GreenStreet

GreenStreet. Image courtesy of Midway

Lionstone Investments and Midway have received a $140 million loan to refinance GreenStreet, a 617,000-square-foot mixed-use development in downtown Houston. The joint venture acquired the asset in 2012, according to Yardi Matrix data. Blackstone Real Estate Debt Strategies provided the three-year bridge loan and JLL secured it on behalf of the borrowers. Last November, Midway also received a $50 million recapitalization for Kirby Grove, another Houston property.

Formerly known as Houston Pavilions, GreenStreet spans four city blocks near a central open-air green space called The Lawn. The development has three main components:

• 180,000 square feet of retail space;
• An 11-story, 260,000-square-foot, Class A office tower anchored by NRG;
• A parking garage with 1,450 spaces.

The property also features 60,000 square feet of entertainment space and more than 43,000 square feet of restaurant space. Not part of the collateral but inclusive in the overall development is Hotel Alessandra, comprising 223 luxury guestrooms.

Located at 1201 Fannin St. in Houston’s central business district, GreenStreet is within walking distance of the 1.8 million-square-foot George R. Brown Convention Center. The property is close to interstates 45 and 69 and nearby public transport stations make the place easily accessible from all parts of the city.

Leases—large and small

NRG currently occupies 195,000 square feet at the GreenStreet’s tower, Yardi Matrix data shows. Additionally, Life Time recently signed a 15-year lease at the property. The 108,000-square-foot space will feature the firm’s new coworking concept, Life Time Work, but also a fitness resort, spa and café. The property’s tenant roster also includes Spaces, House of Blues, Guadalajara and AT&T SportsNet.

Lionstone Investments and Midway intend to implement a multimillion-dollar capital improvement plan at the property, set to include a new two-story lobby on the ground floor of the office tower.

JLL Senior Managing Director Colby Mueck, Director Matthew Putterman and Associate Laura Sellingsloh led the Capital Markets team representing the owners in the refinancing deal.