PARKWAY TO PAY $345/SF

And the actual retail price is? $167.3M. Or to put it another way, a whopping $345/SF for 484K SF. That's how much Parkway Properties announced it's  under contract  to pay for 3344 Peachtree through its Parkway Properties Office Fund II. Parkway made the announcement late yesterday, and says it expects to close on the tower—now owned by Regent Partners—late January. In a release, Parkway's CEO Steven Rogers stated: "At 93% leased  and with an average remaining lease term of over seven years, this investment is expected to provide steady cash flows to Fund II and will improve the profile of Parkway's Atlanta portfolio." The REIT also expects to assume an existing $90M non-recourse first-mortgage loan on the property with a fixed interest rate of 4.75% and a maturity date of Oct. 1, 2017. Parkway also reports the cap rate is  7%. This isn't the Mississippi's first foray into Buckhead. Parkway owns One Capital City Plaza next door. And, as you might guess, that per SF pricing squarely places it among the records  paid for property in Atlanta. 

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