Wednesday, January 30, 2013

Parkway Agrees To Purchase Eight Office Buildings in Prime Submarket of Jacksonville, FL



James R. Heistand
ORLANDO, FL /PRNewswire/ -- Parkway Properties, Inc. (NYSE: PKY) announced it has entered into a purchase and sale agreement to acquire a portfolio of eight office properties totaling 1.0 million square feet located in the Deerwood submarket of Jacksonville, Florida (the "Deerwood Portfolio") for a purchase price of $130 million.

 The properties were developed in phases from 1996 through 2005 and are currently a combined 93.7% occupied with an average in place gross rent per square foot of $19.11. 

James R. Heistand, Parkway's President and Chief Executive Officer, stated, "We believe the Deerwood portfolio offers a stable, core investment with strong occupancy and a high-quality rent roll. 

"  The Deerwood submarket has been a targeted growth area for Parkway given its prime location and the many amenities it offers, attracting a multitude of institutional and strong credit tenants to the area. 

“Parkway will have a critical mass in this submarket, owning approximately 29% of the total office inventory, which should provide us with operational efficiencies and leasing advantages.  In addition, our attractive cost basis of $128 per square foot represents a significant discount to estimated replacement cost."

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

Thomas E. Blalock
Vice President of Investor Relations
(407) 650-0593

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