JACKSON, Miss., June 29 /PRNewswire-FirstCall/ -- Parkway Properties,
Inc. (NYSE: PKY) today announced the closing of the fee simple sale of two
properties in Knoxville, Tennessee totalling 549,000 square feet. First
Tennessee Plaza in the downtown Knoxville submarket and Cedar Ridge in the
Cedar Bluff submarket were a combined 91% occupied as of June 1, 2007. The
gross sales price was $59.0 million and represents a capitalization rate of
approximately 7.7% on the projected 2007 cash net operating income. Parkway
received net cash proceeds from the sale of approximately $56.8 million and
the proceeds were used to prepay the $7.4 million first mortgage and to
reduce amounts outstanding under the Company's bank lines of credit. The
Company will recognize a gain on the sale of approximately $20.3 million
and expenses related to the prepayment of the mortgage of approximately
$494,000 in the second quarter. Parkway Realty Services LLC was retained to
provide management services for the properties under a five-year agreement.
(Logo: http://www.newscom.com/cgi-bin/prnh/20030513/PARKLOGO )
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 65 office
properties located in 11 states with an aggregate of approximately 12.9
million square feet of leasable space as of June 29, 2007. Included in the
portfolio are 18 properties totaling 2.7 million square feet that are owned
jointly with other investors, representing 21% of the portfolio. Under the
Company's GEAR UP Plan, which started January 1, 2006 and ends December 31,
2008, it is the Company's goal to transform its strategy from being an
owner-operator to being an operator- owner. The strategy highlights the
Company's strength in providing excellent service in the operation of
office properties in addition to its direct ownership of real estate
assets. Fee-based real estate services are offered through the Company's
wholly-owned subsidiary, Parkway Realty Services, which also manages and/or
leases approximately 1.8 million square feet for third party owners as of
June 29, 2007.
Parkway Properties, Inc.'s press releases and additional information
about the Company are available on the World Wide Web at
http://www.pky.com.
CONTACT: William R. Flatt
Chief Financial Officer
(601) 948-4091
SOURCE Parkway Properties, Inc.
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Related links:
http://www.pky.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20030513/PARKLOGO
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PRN Photo Desk, photodesk@prnewswire.com
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CONTACT:
William R. Flatt, Chief Financial Officer,
Parkway Properties, Inc., +1-601-948-4091
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