Interra Acquires 552,250-Square-Foot Houston Office Portfolio for Undisclosed Sum

Park Towers sold at occupancy of 89.5 percent and a 6.3-year weighted average lease term, with Morgan Stanley providing acquisition financing.

By the Family Office Real Estate Daily Desk·Thursday, October 1, 2026·2 min read

Editorial summary of reporting byJLL Our editorial standards →

The answer · checked against JLL

Who bought Park Towers in Houston, what are the deal terms, and who arranged the financing?

Interra Capital Group acquired Park Towers, a 552,250-square-foot, two-building Class A office portfolio in Houston's Galleria/Uptown submarket from Regent Properties. The portfolio is 89.5% leased with a 6.3-year weighted average lease term. JLL Capital Markets represented the seller and arranged acquisition financing through Morgan Stanley on behalf of Interra Capital Group.

Key facts

Interra Capital Group purchased Park Towers, a 552,250-square-foot, two-building Class A office portfolio located at 1233 and 1333 West Loop South in Houston's Galleria/Uptown submarket, from Regent Properties.
Park Towers was 89.5% leased at the time of sale, with a 6.3-year weighted average lease term, according to JLL Managing Director Rick Goings.
Morgan Stanley provided acquisition financing for Interra Capital Group, arranged by JLL Senior Managing Director Susan Hill.
Park Towers comprises two 18-story office buildings originally built in 1972 and significantly renovated between 2016 and 2022, with LEED Gold and Energy Star certifications.
JLL Managing Director Rick Goings said there have been 10 office asset sales over $100 million in the last 18 months alone.
Jack Polatsek, Founder and CEO of Interra Capital Group, said the firm's focus is on hands-on asset management, continued investment in the property, and delivering an exceptional experience for tenants.

Interra Acquires 552,250-Square-Foot Houston Office Portfolio for Undisclosed Sum — Image: editorial illustration · Story sourced from JLL

Interra Capital Group acquired Park Towers, a 552,250-square-foot office portfolio in Houston's Galleria/Uptown submarket, from Regent Properties. JLL Capital Markets arranged the sale and placed acquisition financing for the buyer through Morgan Stanley.

The portfolio comprises two 18-story Class A buildings at 1233 and 1333 West Loop South. Originally built in 1972, both were renovated between 2016 and 2022. They sit at the intersection of Post Oak Boulevard and West Loop South, with frontage along the 610 West Loop and visibility to more than 271,000 vehicles daily.

Park Towers is currently 89.5 percent leased, with a weighted average lease term of 6.3 years. The tenant roster includes firms in banking, financial services, law, real estate and energy. Amenities include a fitness center with locker rooms, tenant lounge, game room, conference facilities, executive boardroom, wine storage, bike storage and a full-service deli. A six-level parking garage delivers approximately 1,700 spaces, a ratio of 3.5 spaces per 1,000 square feet. Both buildings hold LEED Gold and Energy Star certifications.

The properties are located within five to 15 minutes of River Oaks, Tanglewood, Memorial Villages and West University. The Galleria/Uptown submarket encompasses more than 30 million square feet of office space, six million square feet of retail, 8,400 hotel rooms and more than 100 restaurants, attracting more than 30 million visitors annually. Park Towers sits adjacent to The Galleria shopping center and near River Oaks District, Highland Village, Uptown Park and Boulevard Place.

"Park Towers represented an exceptional opportunity to acquire a premier Galleria office asset with attractive in-place cash flow at a basis well below replacement cost," said Rick Goings, managing director at JLL. "With 89.5% occupancy and 6.3 years of weighted average lease term, the portfolio offers both stable cash flow and meaningful upside potential. Large deal activity is back; there have been 10 office asset sales over $100 million in the last 18 months alone."

Diversification across geographies only works when the local operating fundamentals inside each one are genuinely uncorrelated, family office advisor Jaf Glazer has observed.

"The Galleria/Uptown district continues to outperform as Houston's most amenity-rich office environment," said Kevin McConn, managing director at JLL. "With over 30 million annual visitors, 100+ restaurants, world-class retail, and immediate access to Houston's most affluent residential neighborhoods, Park Towers offers tenants an unmatched live-work-play experience. Recent leasing velocity in the competitive set demonstrates strong tenant demand for premier, newly renovated assets, underscoring the long-term strength of this investment."

"Park Towers is exactly the kind of opportunity Interra was built to pursue: a well-located, well-leased Class A asset in the heart of Houston's Galleria with a strong, diversified tenant base," said Jack Polatsek, founder and chief executive of Interra Capital Group. "We appreciate the JLL team's work in bringing this transaction together and Morgan Stanley's partnership in delivering the acquisition financing. Our focus now is on hands-on asset management, continued investment in the property and delivering an exceptional experience for our tenants."

The Deployment Angle

Family Office Real Estate Daily Desk · our analysis, not the source's

A family office evaluating office exposure in second-tier metros should underwrite this transaction as a co-GP opportunity alongside Interra or a separate-account buy of similar vintage product. The arithmetic is straightforward. At 89.5 percent occupancy, the property delivers immediate rent coverage. At 6.3 years of weighted average lease term, rollover risk is deferred past the likely next refinancing window. A basis below replacement cost implies a purchase price materially under the $400 to $500 per square foot required to build new Class A product in the Galleria submarket today, suggesting an entry in the mid-$200s per square foot range for a stabilized asset.

The underwriting case centers on Houston office fundamentals and Galleria's position within them. The submarket holds more than 30 million square feet of office inventory and attracts more than 30 million annual visitors. Tenants are diversified across banking, financial services, law, real estate and energy. JLL reported ten office sales above $100 million in the Houston market over the past 18 months, indicating institutional capital has returned to the sector. A family office should pressure-test energy-sector lease concentration and model rollover assumptions against Houston's historical absorption cycles.

Direct ownership via a programmatic joint venture with Interra or another value-add sponsor is the natural structure. The asset is large enough to absorb dedicated asset-management resource and small enough to avoid the governance drag of a club deal. Morgan Stanley's willingness to provide acquisition financing signals that senior lenders will advance against stabilized Galleria product, reducing the all-in equity requirement. A family office writing a $30 million to $50 million equity check into a portfolio of this profile should model 12 to 15 percent unlevered returns with upside tied to re-leasing at market rents post-renovation.

What to avoid is treating this as a passive LP commitment into a commingled office fund. The deployment here rewards hands-on underwriting of individual leases, tenant credit and capital-expenditure timing. A principal who cannot commit to quarterly asset reviews and annual budget negotiation should pass. The opportunity is in active ownership of a single, defensible submarket position, not in broad beta exposure to Sun Belt office recovery.

Questions this story answers

01Who sold Park Towers in Houston and who bought it?

Regent Properties sold Park Towers to Interra Capital Group. JLL Capital Markets represented Regent Properties as the seller. Interra Capital Group is a Houston-based commercial real estate investment, asset management and development firm focused on value-add and distressed acquisitions, founded in 2006.

02What is the occupancy rate and lease term for Park Towers at the time of the sale?

Park Towers was 89.5% leased at the time of sale, with a weighted average lease term of 6.3 years, according to JLL Managing Director Rick Goings. The tenant roster is diversified across industries including banking, financial services, law, real estate and energy.

03Who provided the acquisition financing for the Park Towers deal?

Morgan Stanley provided acquisition financing for Interra Capital Group's purchase of Park Towers. JLL Senior Managing Director Susan Hill led debt advisory efforts on behalf of Interra Capital Group in arranging the financing.

04Where exactly is Park Towers located and what is the surrounding submarket like?

Park Towers is located at 1233 and 1333 West Loop South in Houston's Galleria/Uptown submarket. The Galleria/Uptown area encompasses over 30 million square feet of commercial office space, six million square feet of retail, 8,400 hotel rooms, and more than 100 restaurants, attracting over 30 million visitors annually.

05How active is the Houston office investment sales market above $100 million?

JLL Managing Director Rick Goings said there have been 10 office asset sales over $100 million in the last 18 months alone, adding that large deal activity is back. Goings described Park Towers as an opportunity to acquire a premier Galleria office asset at a basis well below replacement cost.

Browse every question the desk has answered →

Original reporting

JLL

Read the original at JLL →

officehoustongalleria-uptownvalue-addinterra-capital

Peer Network · By Invitation

The Thesis Exchange

Share an investment thesis in confidence. We pair you anonymously with up to two other family offices running adjacent strategies. Reviewed by Gallium's editorial team. No vendor pitch.