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Parkway Vends Three Assets

Zacks Equity Research

Parkway Properties Inc. (PKY) – an office real estate investment trust (:REIT) – declared the accomplishment of the sale of three assets located in Atlanta and Nashville. The move has helped the company rope in about $50.5 million as total net proceeds.  

The properties sold by Parkway include Waterstone, Meridian and Bank of America Plaza. The Waterstone property is situated in the Airport/South submarket of Atlanta, Ga. and spans over 93,000 square feet. The Meridian property is situated in the Northwest submarket of Atlanta, spanning over 97,000 square foot. The Bank of America Plaza is located in the Central Business District of Nashville, Tenn. and spans over 436,000 square feet.

On Jul 10, 2013, Parkway concluded the sale of Waterstone and Meridian at a gross sale price of $3.4 million and $6.8 million, respectively. Moreover, these assets were 52.1% and 74.7% occupied, respectively, upon closing.

Further, on Jul 17, 2013, Parkway completed the sale of Bank of America Plaza. The gross sale price of the property was $42.8 million and was 93.1% occupied upon closing.

Parkway expects a $4.6 million impairment charge in the second quarter of 2013 due to the sale of two assets situated in Atlanta. Additionally, Parkway expects to earn about $11.9 million related to the sale of Bank of America Plaza in the third quarter of 2013.

Parkway owns, acquires and manages premium office properties in vibrant submarkets in the Sunbelt region of the U.S. As of Apr 1, 2013, the company had interest in 45 office properties (spanning approximately 13.0 million square feet) located across 8 states.

The sale of assets is expected to increase its financial flexibility.

Parkway currently carries a Zacks Rank #4 (Sell). Some REITs that are performing better include DiamondRock Hospitality Company (DRH), Franklin Street Properties Corp. (FSP) and Winthrop Realty Trust (FUR). All these carry a Zacks Rank #1 (Strong Buy).

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