S&P Small Cap 600 Index member real estate company Parkway Properties, Inc. (NYSE: PKY) has sold its Maitland 200 for a gross sale price of $23 million.
Parkway partially owned Maitland 200, a 204,000 square foot office property located in the Maitland submarket of Orlando, through a joint venture. The property was 95.7% occupied as of July 1, 2011.
The gross sale price for Maitland 200 represents a capitalization rate of an estimated 6.7%, 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, according to the real estate company.
In a statement, Steven Rogers, President and Chief Executive Officer at Parkway, said: “Our commitment to the Orlando market remains strong and the sale of Maitland 200 represents a continued execution on our strategy of selling non-core assets and recycling capital into newer, high-quality assets.
“I am particularly pleased that Parkway will continue to manage the property for the new third-party owner, which is a testament to the strength of our platform in the Orlando market.”
Maitland 200 received a $16.9 million first mortgage that it secured upon closing.
The real estate company owned a 20% interest in the property. It also received a priority distribution following the repayment of secured debt of about $2.8 million at closing. The amount was used to reduce amounts outstanding under the its revolving credit facility.
Parkway Properties, Inc. specializes in the operation, leasing, acquisition, and ownership of office properties.
The company focuses on the Southeastern and Southwestern United States and Chicago.
Parkway owns or has an interest in 70 office properties located in 12 states with an aggregate of approximately 15.1 million square feet of leasable space as of July 6, 2011.
The real estate company’s portfolio consists of 26 properties that total 6.6 million square feet owned jointly with other investors, representing 43.8% of the portfolio.
Fee-based real estate services are offered through wholly-owned subsidiaries of the real estate company, which in total manage and/or lease approximately 13.0 million square feet for third-party owners at July 6, 2011.