Parkway Properties Takes Ownership of 7000 Central Park
- Nov 19, 2013
7000 Central Park in Atlanta changed hands on Nov. 5, as the joint venture Parkway Properties Inc. entered has recently foreclosed on the asset and taken ownership of the property, Parkway announced. The mortgage note secured by the office tower cost the partnership just less than $57 million due to a 13 percent discount from its outstanding balance of $65 million. Transaction costs raised the sum by an additional $318,000. The former owner acquired the building for $79.5 million in late June, 2007.
Earlier in November, Parkway announced that it had acquired a 40 percent common equity interest in the mortgage note in question for $8 million. The company also invested around $37 million for a preferred equity interest in the joint venture, adding up to a total share of around $45 million. The joint venture intends to place secured financing on the asset, the proceeds of which will be used to repay in part Parkway’s preferred equity investment.
The 18-story, 415,000-square-foot, Class A office tower is located in the Central Perimeter of Atlanta. Built in 1988, it includes a parking garage and a fitness club of 7,000 square feet among several other amenities. The property is currently 77.5 percent occupied and is expected to generate initial full-year cash net operating income yield of approximately 5 percent.
Parkway already owns two properties in the Central Perimeter submarket, the 438,000-square-foot Two Ravinia and the 370,000-square-foot Peachtree Dunwoody Pavilion. Beside its massive investments in the Central Perimeter area, Parkway also focuses on every major submarket, as the company owns or has interest in 16 properties across Atlanta totaling more than 5.5 million square feet.
Photo Credits: Parkway Properties