Parkway Announces Agreement To Purchase Miami Office Property

        Parkway Announces Agreement To Purchase Miami Office Property

PR Newswire

ORLANDO, Fla., May 6, 2013

ORLANDO, Fla., May 6, 2013 /PRNewswire/ --Parkway Properties, Inc. (NYSE:
PKY) announced today that it has entered into a purchase and sale agreement to
acquire Lincoln Place, a 140,000 square foot office and retail building
located in the South Beach submarket of Miami, Florida. 

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

James R. Heistand, Parkway's President and Chief Executive Officer, stated,
"We are excited for the opportunity to expand into the South Florida area.
Webelieve this market is in the early stages of a recovery and has the
potential to improve quickly given the diversity and vibrancy of its economy.
Additionally, the South Beach submarket is highly land constrained and boasts
a current vacancy rate of only 8.7%. Lincoln Place is a high-quality, core
asset located one block away from the world-class retail destination of
Lincoln Road. We hope to continue our expansion in the South Florida area
with a similar blend of core, core-plus and value-add investments as we have
done recently in several of our other markets."

Lincoln Place was built in 2002 and is comprised of 111,000 square feet of
office space and 29,000 square feet of retail space on the ground floor.
There is a five-story garage with 534 parking spaces adjacent to the property
that provides parking for daytime office tenants as well as hourly parking on
nights and weekends. The property is currently 100% leased to LNR Corporation
through June 2021 with no renewal or early termination options. Parkway is
under contract to acquire Lincoln Place in exchange for the assumption of the
existing secured first mortgage, which has a current outstanding balance of
approximately $49.6 million, a fixed interest rate of 5.9% and matures in June
2016, and the issuance of 900,000operating partnership units. Based on
Parkway's closing stock price of $18.20 on May 3, 2013, the implied purchase
price would be approximately $66.0 million, or $472 per square foot. Based on
this implied purchase price, the property is expected to generate an initial
full-year cash net operating income yield of approximately 6.7%. Closing is
expected to occur by the end of the third quarter of 2013, subject to
customary closing conditions, the successful assumption of the existing first
mortgage and Parkway's satisfactory completion of due diligence.

About Parkway Properties

Parkway Properties, Inc. is a fully integrated, self-administered and
self-managed real estate investment trust specializing in the acquisition,
ownership and management of quality office properties in higher growth
submarkets in the Sunbelt region of the United States. Parkway owns or has an
interest in 45 office properties located in eight states with an aggregate of
approximately 13.0 million square feet at April 1, 2013. Parkway also offers
fee-based real estate services which manage and/or lease approximately 11.8
million square feet for third parties as of April 1, 2013. Additional
information about Parkway is available on the Company's website at
www.pky.com.

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, estimates of
market rental rates, the expected operating performance of anticipated
near-term acquisitions 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
 
Press spacebar to pause and continue. Press esc to stop.