Parkway Expands Presence In Phoenix Market With Purchase Of Tempe Office Tower

Parkway Expands Presence In Phoenix Market With Purchase Of Tempe Office Tower

- Provides Update on Additional Investment Activity -

PR Newswire

ORLANDO, Fla., Jan. 2, 2013

ORLANDO, Fla., Jan. 2, 2013 /PRNewswire/ -- Parkway Properties, Inc. (NYSE:
PKY) announced today the purchase of Tempe Gateway, a 264,000 square foot
office tower located in the Tempe submarket of Phoenix, Arizona, for a
purchase price of $66.1 million. Tempe Gateway was built in 2009 and is
currently 73.9% occupied. The property is expected to generate a 2013
estimated cash net operating income yield of approximately 5.0%. The Company
does not plan to place a secured first mortgage on the property at this time.
With this purchase, Parkway owns 788,000 square feet in the Tempe submarket of
Phoenix.

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

James R. Heistand, Parkway's President and Chief Executive Officer, stated,
"We have seen strong leasing demand and positive rental rate growth at our
other assets in this growing submarket, and we are delighted to expand our
presence in Tempe withthis value-add investment."

Other Investment Activity

On December 31, 2012, Parkway completed the previously announced purchase of
NASCAR Plaza for approximately $100 million. NASCAR Plaza was built in 2009
and is a 20-story, LEED^® Silver certified office tower.Parkway assumed 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, Parkway intends to amend and
restate the loan to current market terms.

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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