JV Picks Up Houston Pavilions for $100M

Houston Pavilions, a mixed-use three-block project in the heart of downtown Houston, traded hands this month as Entertainment Development Group sold the property for $100 million, or $175 per square foot, according to a CoStar report. Houston's Midway Cos. and Los Angeles-based Canyon-Johnson Urban Funds, a national real estate fund affiliated with Earvin "Magic" Johnson, have taken ownership of the complex and said that they will invest additional funds to revitalize the property to accelerate leasing. The JV acquired the project from receiver Transwestern, which was assigned to manage, lease and market the property in 2011.

In a joint statement, Bobby Turner, Canyon-Johnson's Managing Partner, and Earvin "Magic" Johnson said, "We are both proud to be investing in Houston again, and to be partnering with Midway to maximize the potential of such an incredible mixed-use asset. The support we have received from the City of Houston's leadership makes projects like this a possibility."

"The Houston Pavilions is a well-positioned property that we believe has incredible potential. The project is strategically located in Downtown Houston and fits our investment criteria for high-quality, remarkable assets. We are very excited to be partnered with Canyon-Johnson to acquire the property," said Midway COO Jonathan Brinsden.

Built in 2008, the Class-A 556,000 square foot project at 1201 Fannin includes the fully occupied, 11-story regional headquarters for NRG Energy, one of the largest power generating companies in the country, along with restaurants, retailers and venues including the House of Blues, Forever XXI, McCormick & Schmick's and Lucky Strike.

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