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Parkway Pays $145.8M for Miami's Courvoisier Centre

Tishman Speyer Sells 346,000-SF Office Complex
April 11, 2014
Parkway Properties, Inc. (NYSE: PKY) has acquired Courvoisier Centre at 501 and 601 Brickell Key Dr. in Miami, FL from Tishman Speyer for $145.8 million, or about $421 per square foot.

The 346,000-square-foot, two-building office complex was built in the late 1980s on 4.5 acres in the Brickell submarket of Miami/Dade County, on Brickell Key Island. The buildings feature panoramic water views and a comprehensive amenity package. Courvoisier Centre II is a 12-story, 207,489-square-foot, 4-Star office tower, and Courvoisier Centre I stands seven stories and contains 97,087 square feet of office space. Included in the sale is a seven-story parking garage offering more than 940 spaces and retail storefront space on the ground floor - home to the Senses Brasserie restaurant.

At the time of sale the assets were 83 percent leased to multiple tenants, including Young & Rubicam, Sony Pictures, CNN, WWE, MGM, Live Nation, Swire Properties, and Medina Capital. The investment is expected to generate an initial-year net operating income yield (pro-forma CAP) of 4.5%.

Tishman Speyer acquired the assets in 2007 for $150 million, according to CoStar data. In 2013 they completed a $10 million renovation and capital improvement program that included upgraded lobbies, corridors, restrooms, a new fitness center, and elevator modernizations.

Parkway funded its acquisition in-part with available cash on hand and borrowings under its new seven-year, unsecured credit facility. In connection with the financing, Parkway took the full amount of its $100 million loan, while simultaneously paying in full the first mortgage debt secured by the firm's Bank of America Center in Orlando, FL, which had an outstanding balance of $34.2 million including breakage costs.

Jeff Morris, Jubeen Vaghefi, and Dennis St. Romain with JLL represented the sellers. Parkway handled the sale in-house.

Please see CoStar COMPS #2999931 for additional information on this transaction.

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