Parkway Agrees to Purchase NASCAR Plaza in Charlotte, NC for About $100 Million

Nascar Plaza, Charlotte, NC

 ORLANDO, FL /PRNewswire/ -- Parkway Properties, Inc. (NYSE: PKY) announced it has entered into a purchase and sale agreement to acquire NASCAR Plaza, a 390,000 square foot office tower located in the central business district (CBD) of Charlotte, North Carolina, from a joint venture between Trinity Capital Advisors and Rubenstein Partners for a purchase price of approximately $100 million.

Closing is expected to occur by the end of the fourth quarter 2012 and is subject to customary closing conditions.  Parkway intends to fund its share of equity using excess cash and borrowings from its revolving credit facility.

James R. Heistand

NASCAR Plaza was built in 2009 and is a 20-story, LEED(®) Silver certified office tower. 

The building is adjacent to the NASCAR Hall of Fame and is the headquarters for NASCAR, which has leased 139,000 square feet through May 2021.  Currently, the building is 88% leased with an average in place rent per square foot of $25.61. 

James R. Heistand, Parkway's President and Chief Executive Officer, stated, "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.

Nascar Hall of Fame, Charlotte, NC

“ 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."

NASCAR Plaza is expected to generate a 2013 estimated cash net operating income yield of approximately 7%.  Parkway will own 100% of the asset and plans to assume the first mortgage secured by the property, which has a current outstanding balance of approximately $42.3 million with a current interest rate of 4.7% and a maturity date of March 30, 2016; however,

The Charlotte CBD is a submarket that continues to exhibit improving fundamentals, with positive net absorption of 234,000 square feet in the third quarter and a direct vacancy rate which declined 150 basis points from the prior quarter to 9.8% as of September 30, 2012, according to CBRE. 

For a complete copy of the company’s news release, please contact:

Thomas E. Blalock

Vice President of Investor Relations

(407) 650-0593

Web Site: http://www.pky.com