Parkway Properties Buys Tempe Gateway for $66.1M; Offers Additional Investment Activity
Parkway Properties, Inc. (NYSE: PKY) announced today the purchase of Tempe Gateway, a 264,000 square foot office tower located in the Tempe submarket of Phoenix, Arizona, for a purchase price of $66.1 million. Tempe Gateway was built in 2009 and is currently 73.9% occupied. The property is expected to generate a 2013 estimated cash net operating income yield of approximately 5.0%. The Company does not plan to place a secured first mortgage on the property at this time. With this purchase, Parkway owns 788,000 square feet in the Tempe submarket of Phoenix.
On December 31, 2012, Parkway completed the previously announced purchase of NASCAR Plaza for approximately $100 million. NASCAR Plaza was built in 2009 and is a 20-story, LEED^® Silver certified office tower. Parkway assumed the first mortgage secured by the property, which has a current outstanding balance of approximately $42.3 million with a current interest rate of 4.7% and a maturity date of March 30, 2016; however, Parkway intends to amend and restate the loan to current market terms.
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