Parkway Announces Shopping Spree, Eyes Atlanta’s Tower Place 200
Parkway Properties, Inc. will soon own three towers clustered together at Peachtree and Tower Place, as the company has announced entering into a purchase and sale agreement to buy the Tower Place 200 office building for $56 million.
The company already owns the 50-story 3344 Peachtree building—which shares a parking garage with Tower Place 200—and the neighboring One Capital City Plaza.
The 13-story, Class A Tower Place 200 was built in 1998; its prime Buckhead location provides direct access to Georgia 400 and is within walking distance to Buckhead MARTA station. Currently 81 percent leased, with an average in place gross rent per square foot of $26.37, the tower is expected to generate a 2013 estimated cash net operating income yield of approximately 5.9 percent. According to an official company statement, Parkway will own 100 percent of the asset and does not plan to place secured financing on the property at this time. The $56 million price tag equates to $216 per square foot.
After recently closing on the purchase of Westshore Corporate Center—a 170,000-square-foot office tower located in the Westshore submarket of Tampa, Florida—for $22.5 million, Parkway Properties plans on paying $124.5 million for the LEED Gold-certified Phoenix Tower in Houston, Texas, and $47.4 million for the 406,000-square-foot 525 North Tryon office tower located in the central business district of Charlotte, North Carolina. Parkway estimates that the acquisitions of Tower Place 200, Phoenix Tower and 525 North Tryon will close by the end of the fourth quarter of 2012.
Referring to Parkway’s recent shopping spree, James R. Heistand, Parkway’s president and chief executive officer, stated that “These three acquisition opportunities fit well within our investment strategy of acquiring high-quality assets in our targeted submarkets. We believe these three investments continue our portfolio transformation, as we strive to become the leading operator of office properties in our Sunbelt markets.”
Image via Livable Atlanta