print header

# 1 Commercial Real Estate Information Company

  • Find Properties 
  • Market Properties 
  • Analyze Properties 
Products
Commercial Real Estate News

STOCKING UP: Parkway Lines Up Three More Building Buys, Selling Shares To Raise Money

December 5, 2012
Parkway Properties Inc. (NYSE:PKY) will try to raise more than $180 million by selling 13.5 million shares of common stock to finance its previously announced deal to buy NASCAR Plaza in Charlotte and three new office properties it has contracted to acquire.


Share this story with your followers


"These three [new] acquisition opportunities fit well within our investment strategy of acquiring high-quality assets in our targeted submarkets,” said James R. Heistand, Parkway's president and CEO. “We believe these three investments continue our portfolio transformation, as we strive to become the leading operator of office properties in our Sunbelt markets."

The Orlando-based firm is under contract to acquire Phoenix Tower in the Greenway Plaza submarket of Houston for $124.5 million, or $199 per square foot. Phoenix Tower was built in 1984 and fully renovated in 2011. It is a LEED Gold Certified, 26-story, Class A office tower that sits atop an eight-story parking garage. The building is currently 84.5% leased with an average in place net rent per square foot of $14.03. Phoenix Tower is expected to generate a 2013 estimated cash net operating income yield of 6%. Parkway will own 100% of the asset and intends to place a secured first mortgage on the property shortly after closing totaling 65% of the purchase price.

Parkway also has Tower Place 200 in the Buckhead submarket of Atlanta under contract for $56 million, or $216 per square foot. Tower Place 200 was built in 1998 and is a 13-story, Class A office tower that shares a parking garage with Parkway's neighboring 3344 Peachtree asset. The building is 81% leased with an average in place gross rent per square foot of $26.37. Tower Place 200 is expected to generate a 2013 estimated cash net operating income yield of 5.9%.

Parkway also plans to buy 525 North Tryon in Charlotte's CBD for $47.4 million, or $117 per square foot. The 19-story, Class A office tower is currently 69.8% leased with an average in place gross rent per square foot of $19.61.

In October, Parkway agreed to acquire NASCAR Plaza, a 395,000-square-foot office tower also located in Charlotte's CBD for $99.9 million. It plans to assume the first mortgage secured by the property, which has a current outstanding balance of $42.3 million, a current interest rate of 4.7% and a maturity date of March 30, 2016. Built in 2009, NASCAR Plaza is the headquarters for NASCAR, which has leased 139,000 square feet through May 2021. The property is currently 88.1% occupied.

Parkway expects to close all of the purchase by the end of the fourth quarter of 2012.


Keep up weekly on national news, trends and property leads with the Watch List Newsletter, a weekly pdf that includes other news and leads not found on the CoStar Group web news pages. Sign up for the Watch List E-Mail Alert. A new issue is published late each Wednesday.

 Find us on 

Welcome To CoStar's
Industry-Focused,
Award-Winning News

Winner of three Journalism Awards from the National Association of Real Estate Editors (NAREE)

Award-Winning News