A deep dive into the downtown Austin towers that'll be swept up in the TPG-Parkway merger
Sep 9, 2013
Austin Business Journal
The proposed acquisition Thursday of Thomas Properties Group (NYSE: TPG) by Parkway Properties Inc. (NYSE: PKY) took most Austin real estate brokers by surprise
"It's big news for Austin, Texas," said Elysia Ragusa, senior managing director of Jones Lang LaSalle. "I know both organizations well, and they are quality companies coming together. They're not doing this out of weakness."
As a result of the deal, which needs to be ratified by stockholders of both companies, Austin's largest downtown Class A office portfolio will be owned and managed by Orlando, Fla.-based Parkway Properties
Even so, other local brokers said they expect the current Thomas Properties team in Austin - vice presidents Mark Miller and Andrew Smith - will stay on board working under the Parkway banner
Though Los Angeles-based Thomas Properties Group has been the dominant office owner in the Central Business District, it has faced challenges filling out spaces in its portfolio. New office projects under construction create an even more challenging scenario