JACKSON, Miss., July 16 /PRNewswire-FirstCall/ -- Parkway Properties, Inc. today announced the closing of the fee simple sale of the Town Point Center office property in Norfolk, Virginia. Town Point Center, which is located in the Downtown Norfolk submarket, is a 131,000 square foot property that is 96.7% occupied as of July 1, 2008. The gross sales price was $12.75 million and represents a capitalization rate of approximately 7.9% on twelve months projected cash net operating income from the date of closing. Parkway received net cash proceeds from the sale of approximately $12.0 million, which were used to reduce amounts outstanding under the Company's bank lines of credit. The Company will recognize a gain on the sale of approximately $1.6 million in the third quarter.
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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 11 states with an aggregate of approximately 14.0 million square feet of leasable space as of July 16, 2008. Included in the portfolio are 21 properties totaling 3.8 million square feet that are owned jointly with other investors, representing 27.1% 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 1.6 million square feet for third party owners as of July 16, 2008.
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: STEVEN G. ROGERS PRESIDENT & CHIEF EXECUTIVE OFFICER J. MITCHELL COLLINS CHIEF FINANCIAL OFFICER (601) 948-4091
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