Regent Partners kicked off the new year with a huge win. Parkway Properties is under contract to purchase 3344 Peachtree on behalf of Parkway Properties Office Fund II, L.P. for a whopping $167.3 million. Regent Partners developed the 50-story tower in 2008 at a cost of about $250 million. The mixed-use project has retail, offices and 82 luxury condos starting at $1,000,000 to over $9,000,000. Parkway put up $6,000,000 as earnest money for the transaction. The acquisition is expected to take place later this month.
Designed by the architectural firm of Smallwood, Reynolds, Stewart, Stewart & Associates, Sovereign’s commercial section encompasses approximately 470,000 square feet of office space on 18 floors and 20,000 square feet of retail space. The acquisition agreement includes an adjacent 11-story parking facility. The commercial space is roughly 93 percent leased. As per terms of the agreement, Fund II will make a $160 million investment that will include the assumption of existing debt on the property in the form of a $90 million non-recourse first mortgage loan with a fixed interest rate of 4.75 percent and a maturity date in October 2017. Parkway Properties L.P. will supply the remaining $7.3 million of the purchase cost.
You might be asking me “What about the condos?” The key is in the post title. The 23 floors of residences were not included in the sale, so I don’t think we’ll be seeing the condo prices dropping anytime soon. In fact, I think it’s quite the opposite. Most of the sales in the building thus far have been for the larger units and buyers are paying huge amounts to live in the building. What’s listing in the MLS? Click here.
Who is Parkway Properties?
Parkway Properties, Inc., a member of the S&P Small Cap 600 Index, is a self-administered real estate investment trust specializing in the operation, leasing, acquisition, and ownership of office properties. The Company is geographically focused on the Southeastern and Southwestern United States and Chicago. Parkway owns or has an interest in 64 office properties located in 11 states with an aggregate of approximately 13.2 million square feet of leasable space as ofDecember 22, 2010. Included in the portfolio are 20 properties totaling 3.7 million square feet that are owned jointly with other investors, representing 28.0% of the portfolio. Fee-based real estate services are offered through the Company’s wholly-owned subsidiary, Parkway Realty Services, which also manages and/or leases approximately 2.5 million square feet for third-party owners at December 22, 2010.