Parkway closes Phoenix Tower and 525 North Tryon acquisitions
Parkway Properties has closed the previously announced acquisitions of Phoenix Tower, a 626,000 square foot office tower in Houston, Texas, and 525 North Tryon, a 406,000 square foot office tower in Charlotte, North Carolina.
Parkway completed the purchase of Phoenix Tower (pictured) for USD123.8m or USD198 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 per cent leased with an average in place net rent per square foot of USD14.03.
Phoenix Tower is expected to generate a 2013 estimated cash net operating income yield of approximately 6.0 per cent. Parkway will own 100 per cent of the asset and intends to place a secured first mortgage on the property totalling approximately 65 per cent of the purchase price.
Parkway completed the purchase of 525 North Tryon for USD47.4m or USD117 per square foot.
525 North Tryon was built in 1998 and is a 19-story, Class A office tower with an attached parking garage. The building is currently 69.8 per cent leased with an average in place gross rent per square foot of USD19.61.
525 North Tryon is expected to generate a 2013 estimated cash net operating income yield of approximately 4.7 per cent. Parkway will own 100 per cent of the asset and does not plan to place secured financing on the property at this time.