Parkway Properties, Inc. (NYSE:PKY) has sold an office property at Virginia for a gross sale price of $9.3 million.
The announcement follows a recently wound up sale of Maitland 200, a 204,000 square-foot office property located in the Maitland submarket of Orlando.
On the other hand, Glen Forest is an 81,000 square foot office property located in the Parham Road submarket of Richmond, Virginia. The building was 99.1 percent occupied as of August 1, 2011.
Steven Rogers, President and Chief Executive Officer of Parkway said: “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.”
Parkway estimates the gross sale price for Glen Forest as representing approximately 8.8 percent of its capitalization rate, 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 office property was “unencumbered with debt at the time of the sale,” Parkway said.
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’s geographical focus includes the Southeastern and Southwestern United States and Chicago.