The Christmas season was jolly for Parkway Properties. The investor has managed to add several landmark properties to its Florida portfolio besides announcing it was in contract for selling assets in Houston, Texas and Phoenix, Arizona.
Parkway is a real estate investment trust involved in the acquisition, ownership and management of quality office properties in higher-growth submarkets in the southern regions of the United States. The company currently owns or has interest in 50 office properties located in eight states totaling around 17.6 million square feet. The REIT has reached agreement to acquire Jacksonville’s JTB Center and has also acquired its co-investor’s 70 percent interest in the Bank of America Center, located in Orlando.
“JTB Center will allow Parkway to gain additional scale in the highly-desirable Deerwood submarket of Jacksonville,” said James R. Heistand, Parkway’s President and CEO, in a statement for the press. Inaugurated in 2001, the 248,000-sq.-ft. office complex in Jacksonville includes three Class A office buildings, located along J. Turner Butler Boulevard in the city’s Deerwood submarket, between Gate Parkway and Southside Boulevard, just south of JTB, with easy access to I-95, 9A.
Parkway signed a definitive purchase agreement with the current owner, the New York-based DRA Advisors L.L.C. The transaction is worth $33.3 million and it is expected to close by the end of the first quarter. The buildings have a combined occupancy of 94.4 percent and are expected to generate an initial full-year cash net operating income yield of approximately 8.3 percent. With hotels and banking a short way off and also within 2 miles of St. Johns Town Center, the property is in one of the most desirable parts of town. The amenities include large efficient floor plates, 24-hour key pad access, uniformed service personnel on-site and exterior signage with JTB visibility.
According to the Jacksonville Business Journal, Parkway has purchased the nearby Deerwood North and Deerwood South in 2013 at around the same price per square foot. The rental rates are currently $20.50 per square foot.
Photo credits: Parkway Properties