Parkway Announces Closing Of Phoenix Tower In Houston And 525 North Tryon In Charlotte

 Parkway Announces Closing Of Phoenix Tower In Houston And 525 North Tryon In
                                  Charlotte

PR Newswire

ORLANDO, Fla., Dec. 20, 2012

ORLANDO, Fla., Dec.20, 2012 /PRNewswire/ --Parkway Properties, Inc. (NYSE:
PKY) announced today the closing of the previously announced acquisitions of
Phoenix Tower, a 626,000 square foot office tower located in the Greenway
Plaza submarket of Houston, Texas, and 525 North Tryon, a 406,000 square foot
office tower located in the central business district of Charlotte, North
Carolina.

(Logo: http://photos.prnewswire.com/prnh/20030513/PARKLOGO )

On December 20, 2012, Parkway completed the purchase of Phoenix Tower for
$123.8 million, or $198 per square foot. Phoenix Tower was built in 1984 and
fully renovated in 2011. It is a LEED^® Gold Certified, 26-story, Class A
office tower that sits atop an eight-story parking garage. The building is
currently 84.5% leased with an average in place net rent per square foot of
$14.03. Phoenix Tower is expected to generate a 2013 estimated cash net
operating income yield of approximately 6.0%. Parkway will own 100% of the
asset and intends to place a secured first mortgage on the property totaling
approximately 65% of the purchase price.

On December 6, 2012, Parkway completed the purchase of 525 North Tryon for
$47.4 million, or $117 per square foot. 525 North Tryon was built in 1998 and
is a 19-story, Class A office tower with an attached parking garage. The
building is currently 69.8% leased with an average in place gross rent per
square foot of $19.61. 525 North Tryon is expected to generate a 2013
estimated cash net operating income yield of approximately 4.7%. Parkway will
own 100% of the asset and does not plan to place secured financing on the
property at this time.

About 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 ownership
of quality office properties in higher-growth submarkets in the Sunbelt region
of the United States. Parkway owns or has an interest in 38 office properties
located in nine states with an aggregate of approximately 10.0 million square
feet of leasable space at November 1, 2012. Fee-based real estate services
are offered through wholly owned subsidiaries of the Company, which in total
manage and/or lease approximately 11.6 million square feet for third-party
owners at November 1, 2012.

Forward Looking Statement

Certain statements in this press release that are not in the present or past
tense or that discuss the Company's expectations (including any use of the
words "anticipate," "assume," "believe," "estimate," "expect," "forecast,"
"guidance," "intend," "may," "might," "project", "should" or similar
expressions) are forward-looking statements within the meaning of the federal
securities laws and as such are based upon the Company's current beliefs as to
the outcome and timing of future events. There can be no assurance that actual
future developments affecting the Company will be those anticipated by the
Company. Examples of forward-looking statements include projected net
operating income, cap rates, internal rates of return, future dividend payment
rates, forecasts of FFO accretion, projected capital improvements, expected
sources of financing, expectations as to the timing of closing of
acquisitions, dispositions and other potential transactions and descriptions
relating to these expectations. These forward-looking statements involve
risks and uncertainties (some of which are beyond the control of the Company)
and are subject to change based upon various factors, including but not
limited to the following risks and uncertainties: changes in the real estate
industry and in performance of the financial markets; the demand for and
market acceptance of the Company's properties for rental purposes; the ability
of the Company to enter into new leases or renew leases on favorable terms;
the amount and growth of the Company's expenses; tenant financial difficulties
and general economic conditions, including interest rates, as well as economic
conditions in those areas where the Company owns properties; risks associated
with joint venture partners; risks associated with the ownership and
development of real property; termination of property management contracts;
the bankruptcy or insolvency of companies for which Parkway provides property
management services or the sale of these properties; the outcome of claims and
litigation involving or affecting the Company; the ability to satisfy
conditions necessary to close pending transactions and the ability to
successfully integrate pending transactions; applicable regulatory changes;
and other risks and uncertainties detailed from time to time in the Company's
SEC filings. Should one or more of these risks or uncertainties occur, or
should underlying assumptions prove incorrect, the Company's business,
financial condition, liquidity, cash flows and financial results could differ
materially from those expressed in the Company's forward-looking statements.
Any forward-looking statement speaks only as of the date on which it is made.
New risks and uncertainties arise over time, and it is not possible for us to
predict the occurrence of those matters or the manner in which they may affect
us. The Company does not undertake to update forward-looking statements
except as may be required by law.

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

SOURCE Parkway Properties, Inc.

Website: http://www.pky.com
 
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