ORLANDO — Parkway Properties Inc. (NYSE : PKY) has reached an agreement to sell a portfolio of 19 office buildings totaling 2.1 million square feet in six states for $237 million. The buyer is an undisclosed single entity. As part of the agreement, the buyer posted a $10 million earnest money deposit.
The move follows Parkway’s recent purchase of 22 properties for $475 million, including three signature properties: Corporate Center I, II and III at International Plaza located in the Westshore submarket of Tampa, Fla. The three assets total approximately 974,000 square feet.
The 19 office assets that Parkway agreed to sell were not consistent with Parkway’s current investment strategy, according to the company.
“The successful disposition of the 19 office buildings that were included in our recently announced portfolio acquisition will allow us to achieve our ultimate goal of acquiring the three Corporate Center assets in Tampa, where we believe we can add considerable value, says James Heistand, president and CEO of Orlando-based Parkway Properties.
“This transaction is yet another example of our commitment to source and structure transactions that result in Parkway’s acquisition of high-quality properties at favorable pricing,” adds Heistand.
The closing of the sale is expected to occur during the fourth quarter. The sale is subject to customary closing conditions, immediately following and subject to the closing of Parkway’s acquisition of the Corporate Center at International Plaza assets.
Parkway Properties is a fully integrated, self-administered and self-managed real estate investment trust specializing in the acquisition, ownership, development and management of office properties in higher growth submarkets in the Sunbelt region of the United States.
Parkway Properties owns or has an interest in 51 office properties located in eight states with an aggregate of approximately 18.3 million square feet of leasable space at July 1, 2014.
Parkway Properties’ stock price closed at $18.38 per share on Tuesday, Oct. 7, up from $17.16 per share a year ago.
— Danielle Everson