Parkway Takes Ownership of One Orlando Centre
- Apr 18, 2014
Parkway Properties, Inc. has announced the acquisition of One Orlando Centre. The company has also simultaneously restructured the existing first mortgage loan.
Parkway is a fully integrated, self-administered and self-managed REIT with main focus on the acquisition, ownership and management of quality office properties in higher growth submarkets in the Sunbelt region. The company’s investment portfolio includes over 50 office properties located in eight states and totals north of 17.6 million square feet.
Also known as the Wells Fargo building, One Orlando Centre is a Class A office building located in the central business district of Orlando, Fla. The 19-story, 356,000-square-foot tower came with an 8-story structured parking garage. Built in 1987, the building is located just north of SR 50 between Orange Avenue and Magnolia Avenue with convenient access to Interstate 4. The property is currently 81.3 percent occupied and is expected to generate an initial full-year cash net operating income yield of 7 percent.
Parkway has taken ownership of the asset by making an $8.0 million equity investment that will provide for 100 percent ownership and management of the asset and be held in lender reserve accounts to cover the property’s leasing and repositioning. At the same time, the existing $68.3 million first mortgage note was restructured into a new $54.0 million first mortgage with a fixed interest rate of 5.9 percent that matures in May 2017 and $16.4 million B-note, which is subordinated to Parkway’s equity investment. The restructured first mortgage includes an option to extend for an additional year.
Photo credits: Parkway Properties