ORLANDO, Fla., Dec. 3, 2012 /PRNewswire/ -- Parkway Properties, Inc. (NYSE: PKY) announced today that it has entered into a purchase and sale agreement to acquire Phoenix Tower, a 626,000 square foot office tower located in the Greenway Plaza submarket of Houston, Texas; Tower Place 200, a 260,000 square foot office tower located in the Buckhead submarket of Atlanta, Georgia; and 525 North Tryon, a 406,000 square foot office tower located in the central business district (CBD) of Charlotte, North Carolina. All three acquisitions are subject to customary closing conditions and are expected to close by the end of the fourth quarter of 2012.
James R. Heistand, Parkway's President and Chief Executive Officer, stated, "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."
Parkway is under contract to acquire Phoenix Tower for a purchase price of $124.5 million, or $199 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% leased with an average in place net rent per square foot of $14.03. Phoenix Tower is expected to generate a 2013 estimated cash net operating income yield of approximately 6.0%. Parkway will own 100% of the asset and intends to place a secured first mortgage on the property shortly after closing totaling approximately 65% of the purchase price. Closing is expected to occur by the end of the fourth quarter 2012 and is subject to customary closing conditions.