JACKSON, Miss., Oct. 16 /PRNewswire-FirstCall/ -- Parkway Properties,
Inc. (NYSE: PKY) announced plans today for a new multi-story office
building to be developed in the central business district of Jackson,
Mississippi, which along with new residential spaces and significantly
renovated parking and retail space will transform an entire city block.
Construction is scheduled to begin next spring on the development, which
planners say will invigorate the downtown Jackson business district. The
development is expected to be completed in the fall of 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20030513/PARKLOGO )
Highlighting the development will be The Pinnacle, a new eight-story
office building encompassing 175,000 feet of commercial office space. The
building will be constructed on an undeveloped area at the corner of
Capitol and Lamar Streets, adjacent to One Jackson Place, Parkway's
corporate headquarters. Parkway has received commitments to lease 75
percent of the new office space in The Pinnacle through agreements with
four major customers. The law firms of Brunini, Grantham, Grower & Hewes,
PLLC and Watkins Ludlam Winter & Stennis, P.A. have committed to relocate
their operations to the building, taking a total of approximately 110,000
to 120,000 square feet under long term leases of fifteen years or longer.
Trustmark Bank will also locate a full service branch plus professional and
executive banking services on the ground floor. EastGroup Properties, Inc.,
a NYSE real estate investment trust, will also relocate its headquarters to
the building.
Estimated cost of The Pinnacle is $39 million with construction
financing to be provided by AmSouth Bank and Trustmark National Bank.
Parkway will be seeking partners for an 80% ownership interest in The
Pinnacle. The Company is also considering a larger joint venture to include
One Jackson Place. The Pinnacle development will qualify for various
economic incentives made possible by the Gulf Opportunity Zone Act. This
legislation was enacted by Congress in 2005 with the intention of
encouraging rebuilding efforts and increasing economic activity in areas
effected by Hurricane Katrina. Through its Parkway Realty Services
subsidiary, Parkway will provide asset, property and construction
management services, as well as leasing services to the building. Details
of Parkway's ownership, capitalization and economic return from the project
will be released as plans are finalized over the next few months. This
investment is consistent with the Company's GEAR UP strategy of owning
assets through joint ventures.
Steve Rogers, President and Chief Executive Officer of Parkway
Properties said, "We believe this project is a rare opportunity for an
investment to meet the Company's return criteria while making a noticable
impact on an urban area. Similar to our experiences with the Toyota Center
in Memphis, this project will be a model of cooperation between private
investors, government and the community at large."
The Jackson Place development will also include The Residences at
Jackson Place, a high quality residential development of 50 to 60 units.
Parkway will seek to partner with experts in residential development to
complete this phase of the development in a manner that is complimentary to
the Jackson Place master plan. At this time detailed plans are not
available for the residential portion of the development.
As part of the overall project, the downtown parking garage will be
leased on a long term basis by Parkway and renovated and redesigned.
Extensive improvements will be made to the 1,732 space garage, both to
retail spaces in the lobby and parking levels. A specially-landscaped
garden area will be located between the garage and the new office building.
In addition to the assets at Jackson Place, this garage serves as
additional parking for the Company's 111 East Capitol Building.
More information about the project and project renderings can be found
at http://www.thepinnacleatjacksonplace.com.
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, acquisition, ownership, management, and leasing of office
properties. The Company is geographically focused on the Southeastern and
Southwestern United States and Chicago. Parkway owns or has an interest in
67 office properties located in 11 states with an aggregate of
approximately 12,812,000 square feet of leasable space as of October 16,
2006. The Company also offers fee-based real estate services through its
wholly owned subsidiary, Parkway Realty Services, to its owned properties
and to its third party and minority interest properties.
Parkway Properties, Inc.'s press releases and additional information
about the Company are available on the World Wide Web at http://www.pky.com.
Certain statements in this release that are not in the present tense or
discuss the Company's expectations (including the use of the words
anticipate, forecast or project) 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; the risks associated with the ownership of real property; and
other risks and uncertainties detailed from time to time on the Company's
SEC filings. Should one or more of these risks or uncertainties occur, or
should underlying assumptions prove incorrect, the Company's results could
differ materially from those expressed in the forward-looking statements.
Contact: Steven G. Rogers
President & Chief Executive Officer
William R. Flatt
Chief Financial Officer
(601) 948-4091
SOURCE Parkway Properties, Inc.
 back to top
Related links:
http://www.pky.com
http://www.thepinnacleatjacksonplace.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20030513/PARKLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
http://www.prnewswire.com/comp/103115.html/
CONTACT:
Steven G. Rogers, President & Chief Executive
Officer, or William R. Flatt, Chief Financial Officer, both of
Parkway Properties, Inc., +1-601-948-4091
|
