Parkway Properties Picks Up NASCAR Plaza for $100M
- Nov 02, 2012
By Eliza Theiss, Associate Editor
Orlando, Fla.-based Parkway Properties has announced entering a purchase and sale agreement for the acquisition of NASCAR Plaza, a 395,000-square-foot office tower in Charlotte’s central business district. Parkway Properties will be purchasing the marquee office tower from a joint venture between Trinity Capital Advisors and Rubenstein Partners for an estimated $100 million.
Located at 550 South Caldwell St., the 20-story, 395,000-square-foot Class A office tower is a landmark of Charlotte’s downtown area. NASCAR Plaza opened in May 2009 next to the NASCAR Hall of Fame, developed by Indianapolis-based Lauth Group Inc. Among the tower’s amenities is a state-of-the-art fitness center featuring Cybex and Expresso Interactive Cardio equipment, as well as a full-service sundries shop offering Starbucks coffee, grab-and-go lunches and dry cleaning.
One of the most attractive features of NASCAR Plaza is its LEED Silver certification. One-third of the office tower was manufactured using recycled materials and is equipped with energy-efficient air conditioning that does not employ CFC refrigerants or any other chemicals for cooling. Furthermore, during development, 75 percent of construction waste was diverted from landfills. NASCAR Plaza is also resource efficient: 35 percent of its electricity is provided by renewable resources, and it uses 30 percent less water than a conventional office building.
NASCAR Plaza was created by Pei Cobb Freed & Partners. The property is currently 88 percent leased, with an average rent of $25.61 per square foot. Its tenant roster includes Chiquita Brands International, while the NASCAR headquarters takes up 139,000 square feet leased through May 2012.
“The purchase of NASCAR Plaza represents another off-market transaction that enables us to expand in one of our key target submarkets with a high-quality asset,” declared Parkway Properties President and CEO James R. Heistand. “NASCAR Plaza has a strong tenant base and is the headquarters for several well-known companies, and we expect to create additional value through leasing and rent growth in a submarket that we believe will outperform during a recovery.”
The office tower is expected to generate an estimated 7 percent cash net operating income yield in 2013. Taking full ownership of the property, Parkway will also assume the first mortgage by the estate with the intent of amending and restating the loan to current market rates from its current outstanding balance of $42.3 million, 4.7 percent interest rate and maturity date of March 30, 2016.
Parkway will fund its share of equity with excess cash and borrowings from its revolving credit facility. Closing is expected by the end of 2012.
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