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Our Story

Our track record in commercial real estate demonstrates a history of investment acumen, operational success, and corporate expertise.

Browse the major milestones that brought us here today.

Roots

2000

Jim Heistand founded Eola Capital after decades of real estate experience in the Sun Belt region. Scott Francis joins the leadership team in 2005.

$4 Billion in Acquisitions

2000–2011

From 2000 to 2011, Eola Capital acquired, developed, or sold approximately $4 billion of commercial office assets, which included 13.3 million square feet across the Sun Belt region.

New Leadership

2011

Eola Capital merged with Legacy Parkway, and Jim Heistand was named CEO.

$250 Million Investment

2012

Legacy Parkway received a $250 million investment from TPG Real Estate, a private equity firm.

$250 Asset Acquisition

2012

We acquired Hearst Tower in Charlotte, NC for $250 million, utilizing growth capital to reset the trajectory of Legacy Parkway.

$1.2 Billion Acquisition

2013

In December 2013, we acquired Thomas Properties Group Inc. and entered the key strategic market of Austin, TX by gaining control of 2.4 million square feet of Class A assets in the Austin CBD.

Tempe Properties

2014

Later that same year, we developed Hayden Ferry III in Tempe, a submarket of Phoenix, AZ.

Miami Properties

2014

We entered Miami as a strategic market, acquiring 481K square feet of commercial real estate.

$624 Million in Sales

2014–2015

Over a two-year period, we sold 20 Legacy Parkway assets, including seven assets in Houston, totaling $624 million.

Buckhead Asset Acquisition

2015

In January of 2015, we acquired One Buckhead Plaza in Atlanta, becoming the largest landlord in the submarket. Later in the year, we acquired Two Buckhead Plaza as well.

$2.2 Billion Market Cap

2012–2016

Over a six-year period, Legacy Parkway grew from a $225 million to a $2.2 billion market cap and transformed its portfolio by acquiring approximately $3.9 billion of assets and recycling approximately $2.6 billion of assets, including $623.5 million in Houston alone.

Cousins Merger

2016

Legacy Parkway merged with Cousins and simultaneously spun off PKY, a separate, publicly-traded REIT and the largest Class A office landlord in Houston.

Joint Venture Closure

2017

As PKY, we closed a joint venture of Greenway Plaza with CPPIB, TH Real Estate, and Silverpeak, collectively acquiring a 49% interest.

Top 5 Greenest REITS

2017

Prior to the 2017 Merger, PKY was recognized as one of the top five greenest publicly-traded REITs in our peer group, according to Global Real Estate Sustainability Benchmark.

CPPIB Merger

2017

In 2017 PKY merged with CPPIB, and PKY’s management platform was simultaneously spun off and purchased by Jim Heistand, Scott Francis, and Jason Bates, who formed Parkway Property Investments.

18 LEED Recertifications

2017

In December 2017, PKY earned 18 LEED recertifications and Energy Star labels for all eligible buildings.

2.2 Billion Square Feet

2019

We acquired commercial office assets in Miami, FL; Tampa, FL; Raleigh, NC; Orlando, FL; and Pittsburgh, PA with leading institutional investors, bringing our portfolio to 2.2 billion square feet.

Industrial

2019

Parkway and Silverpeak acquired 730 acres in Lakeland, FL for a future industrial park to accommodate up to 5M square feet of development.

Read the Full Story

To understand our story, you need to start with Jim Heistand, our President and CEO, and his extensive real estate experience.

IN 1989, JIM FOUNDED and served as chairman of Associated Capital Properties, Inc., an office and investment company, where he directed all of the company’s operations until its sale in 1997 to Highwoods Properties for $622 million. After the sale, Jim served as Senior VP for Highwoods from 1997–1999 and as a member of its board of directors for three years. 

When Jim left Highwoods in 1999, he bought DASCO, an owner and operator of medical office buildings, for $500,000 with no assets. After only five years of taking over DASCO, Jim sold the company to CNL Retirement for $240 million.

In 2000, Jim founded Eola Capital LLC (“Eola Capital”) while continuing to grow DASCO’s operations until its sale, and brought Scott Francis onboard the Eola Capital team in 2005. From 2000 – 2011, Eola Capital acquired $1.3 billion of office assets with other leading institutional partners, including 13.3 million square feet in Florida, Atlanta, and Virginia. 

In May 2011, Eola Capital combined with Parkway Properties, Inc. (“Legacy Parkway”), a publicly traded real estate investment trust (“REIT”), and Jim was named Executive Chairman of Legacy Parkway’s board. 

In December 2011, Jim assumed the role of President and CEO of Legacy Parkway. Shortly after, Jim and his leadership team received a PIPE Investment from TPG Capital (“TPG”) for $250 million, resetting the trajectory of Legacy Parkway. 

The management team began repositioning Legacy Parkway’s portfolio, utilizing this growth capital to acquire high-quality iconic assets across the SunBelt at attractive values due to limited institutional liquidity at the time. Within five years, Legacy Parkway’s management team executed a wholesale transformation of its portfolio, acquiring $3.9B of assets and recycling $2.6B of non-core assets.

As a result of this transformation and through innovative, accretive transactions, Legacy Parkway’s stock realized an annual rate of return in excess of 21% at relatively low leverage, making Legacy Parkway the highest performing office REIT within its peer group.

In 2013, Legacy Parkway acquired Thomas Properties Group, Inc. (“Thomas Properties”) and entered into the key markets of Austin, TX and Houston, TX.

When oil prices began to decline in 2014, Legacy Parkway’s stock price also dropped steadily, along with the stock price of companies in its peer group with significant holdings in Houston like Cousins Properties Incorporated (“Cousins”).

After months of strategic evaluation, the Legacy Parkway executive management team determined that the best way to unlock shareholder value and create liquidity for the company was to merge with Cousins (the “Merger”) and spin off the combined company’s Houston assets into a new, publicly-traded REIT, Parkway, Inc. (“PKY”). 

This simultaneous merger and spin-off was completed in October 2016 and allowed the non-Houston assets to trade without being encumbered by the effects of declining oil prices, while providing investors with an opportunity to invest in a pure-play Houston REIT and capitalize on the Houston market’s eventual resurgence. 

Additionally, the merger unlocked the value in the Legacy Parkway portfolio. The Legacy Parkway shareholders that elected to receive shares of Cousins’ common stock recognized a considerable increase in value as compared to the value of Legacy Parkway shares immediately prior to the closing.

Heistand and Francis, among others, led the management team of the newly spun-off PKY. Recognizing the immediate need to unlock value in the Houston portfolio, prior to the closing of the Merger, the management team began exploring joint venture opportunities for Greenway Plaza, PKY’s largest asset.

Within six months of the closing of the Merger, PKY closed on the joint venture of Greenway Plaza with an affiliate of the Canada Pension Plan Investment Board (“CPPIB”) and an entity controlled by TH Real Estate Global Asset Management (“TH Real Estate”) and Silverpeak Real Estate Partners (“Silver Peak”), each owning a 24.5% interest.

A few months after the closing of the joint venture, CPPIB and PKY entered into a definitive merger agreement under which CPPIB agreed to acquire 100% of PKY for $1.2 billion, or $23.05 per share. Each share of PKY common stock held as of October 10, 2016 through the closing of the merger with CPPIB recognized a total appreciation of 18.4% (inclusive of dividends). This transaction enabled PKY to unlock value by capturing the arbitrage between discounted public company values and the private market value of the underlying assets.

The merger with CPPIB closed in October 2017, and immediately afterwards, Heistand and Francis, among others, purchased PKY’s management business and operations from the remainder of PKY’s business and formed Parkway Property Investments.

Today Parkway Property Investments (“Parkway”) indirectly owns, operates and/or provides services for approximately 22.3 million square feet of commercial office assets located in high-growth markets throughout the Sun Belt region of the U.S. and beyond.

PKY SHAREHOLDER RETURNS
12 Month Period (10.2016-10.2017)
Trading Price (10.10.2016)
$19.64/share
Take Private Value
$23.05/share
Shareholder Value Creation
$183 million
Implied IRR
18.4%

The merger with CPPIB closed in October 2017, and immediately afterward, Heistand, Francis, and other members of the management team purchased PKY’s management business and operations from the remainder of PKY’s business and formed Parkway Property Investments (“Parkway”).

As of September 30, 2020, Parkway owns, operates, and/or provides accounting services for approximately 22.3 million square feet of high-quality office and industrial assets located in attractive submarkets in California, Georgia, Florida, Texas, and Virginia.

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