Parkway acquires Bank of America Center in Orlando
Parkway Properties has acquired its co-investor's 70 per cent interest in the Bank of America Center, located in Orlando, Florida, that was previously owned by Parkway Properties Office Fund II.
Parkway has also reached agreement to acquire the JTB Center, an office complex located in Jacksonville, Florida.
Additionally, Parkway is under contract to sell two properties located in Houston, Texas and Phoenix, Arizona.
James Rs Heistand, Parkway's president and chief executive officer, says: "We remain committed to building a high-quality portfolio of assets located in targeted submarkets throughout the Sunbelt. The Bank of America Center is our headquarters location and is a landmark asset in the Orlando CBD. It is a core-plus investment that has a solid base of high-quality, credit tenants with the opportunity to add value through leasing the remaining vacancy at the building. JTB Center will allow Parkway to gain additional scale in the highly-desirable Deerwood submarket of Jacksonville. We believe that each of these off-market transactions will allow Parkway to leverage economies of scale and increase exposure to two of our targeted submarkets. Furthermore, we continue to be proactive and look for opportunities to divest non-core assets that will generate strong returns and strengthen our balance sheet."
On 23 December 2013, Parkway acquired its co-investor's 70 per cent interest in the Bank of America Center, giving Parkway 100 per cent ownership of the asset. The Bank of America Center is an approximately 421,000 square foot, Class A office tower, located in in the central business district of Orlando, Florida. Parkway's purchase price for its co-investor's 70 per cent interest in Bank of America Center was USD52.5m, based on an agreed-upon gross valuation of USD75m, which was funded using approximately USD28.8m of cash and the assumption of USD23.7m of in-place mortgage indebtedness that is secured by the property. Bank of America Center was 87.4 per cent occupied as of 1 October 2013, and expected to generate an initial full-year cash net operating income yield of approximately 6.3 per cent.
On 20 December 2013, Parkway entered into a definitive purchase agreement to acquire the JTB Center for an aggregate purchase price of USD33.3m. JTB Center consists of three, Class A office buildings totalling approximately 248,000 square feet located in the Deerwood submarket of Jacksonville, Florida. The properties are currently unencumbered with debt. As of 1 January 2014, the three properties have a combined occupancy of 94.4 per cent and are expected to generate an initial full-year cash net operating income yield of approximately 8.3 per cent. Closing is expected to occur by the end of the first quarter of 2014, subject to customary closing conditions.
Parkway also has entered into separate agreements to sell two properties, located in Houston, Texas and Phoenix, Arizona, for an aggregate gross sale price of approximately USD28.2m. Each of these sale transactions is expected to close in January 2014.
- By Category
- News from other sites
- Special Reports