Parkway Sells South Carolina Office for $47M

Parkway Properties has wrapped up the $47.5 million disposition of Capitol Center, a 460,000-square-foot office building in Columbia, S.C. The Jackson, Miss.-based company, which acquired the 25-story tower in 1999 for $38 million, pocketed net proceeds totaling $45.8 million, which allowed for the prepayment of an $18.1 million first mortgage, as well as the paying down of debt under the company’s credit facility. Located at 1201 Main St. in Columbia’s Central Business District, Capitol Center was originally developed in 1987. The property is home to a bevy of law firms, in addition to a range of other businesses including the South Carolina Department of Insurance and architectural firm GMK Associates Inc. As of Sept. 1, the building was 97.5 percent occupied. Capitol Center was one of three office assets Parkway announced in May that it would sell. The company has completed the disposition of the 186,000-square-foot Wachovia Plaza in St. Petersburg, Fla., for $26 million last month, and the 131,000-square-foot Town Point Center in Norfolk, Va., for nearly $13 million in July. Net proceeds from the Wachovia Plaza and Town Point Center dispositions were also used to reduce outstanding debt under the company’s line of credit. A self-administered REIT, Parkway acquires, operates and leases office properties in the Southeastern and Southwestern U.S. and Chicago. The company presently owns, in full or in part, 66 office assets accounting for 13.3 million square feet in 11 states.