Sep
08

Capitol Center Sells For $47 Million

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By Daily Report staff – Columbia Business Report

It’s official: Parkway Properties Inc. Friday announced closing the sale of the Capitol Center office complex for $47.5 million to U.S. Real Estate Investment Fund, which is managed by Boston-based Intercontinental Real Estate Corp.

The building is a 460,000-square-foot property that was 97.5% occupied as of Sept. 1.

Parkway received net cash proceeds from the sale of approximately $45.8 million, which were used to prepay the $18.1 million first mortgage plus related mortgage prepayment expenses and reduce amounts outstanding under the company’s line of credit. The company will recognize a gain on the sale of approximately $11.7 million and expenses related to the prepayment of the mortgage of approximately $2.2 million in the third quarter of 2008.

“With this sale, we have completed the sale of three assets announced in May of 2008, with total gross proceeds of $86.3 million. These sales resulted in a net pay down in the Company’s line of credit of $62.6 million, and we will recognize a total gain on these sales of $22.6 million in the third quarter of 2008,” said Steven G. Rogers, Parkway’s president and CEO.

Parkway Properties, of Jackson, Miss., 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.

LINK TO ARTICLE HERE:

http://www.columbiabusinessreport.com/news/65-capitol-center-sells-for-47-million
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