Parkway’s Fund II Buys The Pointe for $47M
- Jan 19, 2012
Along with the sale of 111 East Wacker Drive in Chicago and that of Atlanta’s Falls Pointe, Parkway Properties Inc. has announced the purchase of The Pointe in Tampa for $46.9 million.
The 252,000-square foot office building is located in the Westshore submarket and benefits from a prime waterfront location; currently 88.4 percent leased, it called for a gross sale price of $46.9 million, Parkway’s ownership share being 30 percent.
Parkway president & CEO James Heistand stated, “The Pointe is a landmark asset in the Westshore submarket and includes a strong tenant base consisting of high-quality national and regional credit customers. With this purchase, Parkway now owns an interest in over 788,000 square feet and manages an additional 299,000 square feet for third-party owners in the Westshore submarket, which provides Parkway with important critical mass in this primarily urban infill area. The sale of 111 East Wacker accelerates Parkway’s portfolio repositioning as well as positions our balance sheet for future growth. Additionally, the sale of 111 East Wacker completes Parkway’s exit from Chicago, which we have identified as a non-core market.”
The purchase of the Tampa asset was made on behalf of Parkway Properties Office Fund II L.P.; according to an official release, along with the purchase, Fund II also closed a $23.5 million first mortgage with a fixed interest rate of 4 percent, an initial 42-month interest-only period and a maturity date of February 2019. Parkway’s equity contribution of $7 million was initially funded through availability under the company’s existing revolving credit facility.
Photo Credits: Parkway Properties Official Website