JACKSON, Miss., Aug. 16, 2011 /PRNewswire/ -- Parkway Properties, Inc. (NYSE: PKY) announced today the sale of Glen Forest for a gross sale price of $9.3 million. Glen Forest is an 81,000 square foot office property located in the Parham Road submarket of Richmond, Virginia. The building was 99.1% occupied as of August 1, 2011.
Steven G. Rogers, President and Chief Executive Officer of Parkway stated, "We are continuing to execute on the asset recycling portion of our FOCUS Plan, as we have now sold over $211 million in assets year-to-date. Combined with our recent acquisitions on behalf of Fund II, we have lowered the average age of our portfolio, improved the overall quality of our assets, and increased the percentage of our assets in CBD or urban infill locations. The proceeds from these sales have also allowed us to significantly improve our balance sheet."
The Company estimates the gross sale price for Glen Forest represents a capitalization rate of approximately 8.8%, which is based on projected in-place cash net operating income for the 12 month period following the closing date, including the impact of contractual rent abatements. The property was unencumbered with debt at the time of the sale. Parkway received approximately $8.9 million in net proceeds at closing, which were used to reduce amounts outstanding under the Company's credit facility.
Parkway Properties, Inc., a member of the S&P Small Cap 600 Index, is a self-administered real estate investment trust specializing in the operation, leasing, acquisition, and ownership of office properties. The Company is geographically focused on the Southeastern and Southwestern United States and Chicago. Parkway owns or has an interest in 68 office properties located in 12 states with an aggregate of approximately 14.8 million square feet of leasable space as of August 16, 2011. Included in the portfolio are 26 properties totaling 6.6 million square feet that are owned jointly with other investors, representing 44.6% of the portfolio. Fee-based real estate services are offered through wholly-owned subsidiaries of the Company, which in total manage and/or lease approximately 13.0 million square feet for third-party owners at August 16, 2011.
Parkway Properties, Inc.'s press releases and additional information about the Company are available on the Company's website at www.pky.com.
Forward Looking Statements
Certain statements in this release that are not in the present or past tense or discuss the Company's expectations (including the use of the words anticipate, will, believe, forecast, intends, expects, estimates, projects, 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 belief as to the outcome and timing of future events. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. 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 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; the risks associated with the ownership and development of real property; the failure to acquire or sell properties as and when anticipated; 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; 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 results could differ materially from those expressed in the forward-looking statements. The Company does not undertake to update forward-looking statements, except as may be required by law.
STEVEN G. ROGERS
PRESIDENT & CHIEF EXECUTIVE OFFICER
RICHARD G. HICKSON IV
CHIEF FINANCIAL OFFICER
SOURCE Parkway Properties, Inc.