Parkway Properties Sells Asset in Richmond, Virginia

Parkway Properties

announced today the sale of Glen Forest for a gross sale price of $9.3 million. Glen Forest is an 81,000 square foot office property located in the Parham Road submarket of Richmond, Virginia. The building was 99.1% occupied as of August 1, 2011. Steven G. Rogers, President and Chief Executive Officer of Parkway stated, "We are continuing to execute on the asset recycling portion of our FOCUS Plan, as we have now sold over $211 million in assets year-to-date. Combined with our recent acquisitions on behalf of Fund II, we have lowered the average age of our portfolio, improved the overall quality of our assets, and increased the percentage of our assets in CBD or urban infill locations. The proceeds from these sales have also allowed us to significantly improve our balance sheet." The Company estimates the gross sale price for Glen Forest represents a capitalization rate of approximately 8.8%, which is based on projected in-place cash net operating income for the 12 month period following the closing date, including the impact of contractual rent abatements. The property was unencumbered with debt at the time of the sale. Parkway received approximately $8.9 million in net proceeds at closing, which were used to reduce amounts outstanding under the Company's credit facility. Parkway Properties, a member of the S&P Small Cap 600 Index, is a self-administered real estate investment trust specializing in the operation, leasing, acquisition, and ownership of office properties. The Company is geographically focused on the Southeastern and Southwestern United States and Chicago. Parkway owns or has an interest in 68 office properties located in 12 states with an aggregate of approximately 14.8 million square feet of leasable space as of August 16, 2011. Included in the portfolio are 26 properties totaling 6.6 million square feet that are owned jointly with other investors, representing 44.6% of the portfolio. Fee-based real estate services are offered through wholly-owned subsidiaries of the Company, which in total manage and/or lease approximately 13.0 million square feet for third-party owners at August 16, 2011.