MIAMI — Parkway Properties (NYSE: PKY) has acquired Courvoisier Centre, a 346,000-square-foot office complex in Miami, for $145.8 million. The two-building, Class A complex is located at 501 and 601 Brickell Key Drive on Brickell Key Island in Biscayne Bay, which is 400 feet off the coast of downtown Miami. The seller was an affiliate of Swire Properties.
Courvoisier Centre is the only office complex on Brickell Key, an exclusive gated island that contains high-end luxury condominiums and the five-star Mandarin Oriental Hotel and Spa.
“The acquisition of Courvoisier Centre supports our strategy of acquiring best-in-class assets within the strongest submarkets across the Sunbelt,” says James Heistand, Parkway's president and CEO. “A heavy emphasis on multifamily development within the Brickell submarket has limited the amount of available supply of Class A office assets, which has enabled Brickell to achieve the highest rental rates in Miami.”
The seven-story, 97,087-square-foot Courvoisier Centre I was completed in 1986. The 12-story, 207,489-square-foot Courvoisier Centre II and the adjacent parking garage and 22,084-square-foot retail component were completed in 1990.
The complex includes banking facilities, a gourmet grocery, dry cleaner and other retail amenities. Courvoisier Centre underwent a $10 million renovation in 2013. The buildings are currently 83.4 percent occupied.
“The buildings’ high-end amenity base, along with available parking infrastructure and water views, makes Courvoisier Centre a highly desirable asset,” says Heistand.
Parkway Properties purchased the complex using available cash and proceeds received from borrowings under its new seven-year, unsecured term loan.
A self-managed REIT, Parkway Properties specializes in the acquisition, ownership and management of quality office properties in higher growth submarkets throughout the Sunbelt.
The Orlando, Fla.-based REIT owns or has an interest in 50 office properties in eight states with an aggregate of about 17.6 million square feet, as of the first of this year. Parkway’s stock price closed at $18.06 per share on Thursday, down from $18.21 per share a year ago.
— Nellie Day