JACKSON, Miss., Feb. 23 /PRNewswire-FirstCall/ -- Parkway Properties, Inc.
(NYSE: PKY) today announced the closing of the fee simple sale of the Lynnwood
Plaza office property, located in Hampton Roads, Virginia. Lynnwood Plaza is
an 82,000 square foot property that was 96.7% occupied as of February 1, 2009.
The gross sales price was $7.8 million and represents a capitalization rate of
approximately 8.4% on twelve months projected cash net operating income from
the date of closing. Parkway received net cash proceeds from the sale of
approximately $7.0 million, which were used to reduce amounts outstanding
under the Company's line of credit. During the fourth quarter of 2008, the
Company recognized a non-cash impairment loss of approximately $1.1 million
related to this property.
J. Mitchell Collins, Executive Vice President and Chief Financial Officer
stated, "We are pleased to complete the sale of Lynnwood Plaza, a non-
strategic asset located in Hampton Roads, Virginia, for $7.8 million. We
intend to use the net proceeds from this sale to pay down borrowings under our
line of credit."
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 66 office properties located in 11
states with an aggregate of approximately 13.5 million square feet of leasable
space as of February 23, 2009. Included in the portfolio are 21 properties
totaling 3.8 million square feet that are owned jointly with other investors,
representing 28.6% of the portfolio. Fee-based real estate services are
offered through the Company's wholly-owned subsidiary, Parkway Realty
Services, which also manages and/or leases approximately 1.4 million square
feet for third party owners as of February 23, 2009.
Parkway Properties, Inc.'s press releases and additional information about
the Company are available on the World Wide Web at www.pky.com.
