Parkway Properties' first acquisition in the market is now 89% leased, with United Healthcare Services and Young & Rubicam accounting for nearly 30% of the 1.07-million sf of space in the Illinois Center building. In addition, negotiations are underway involving 8,000 sf of first-floor retail space, says Parkway Properties chief financial officer Marshall Loeb.
Meanwhile, talks continue on a joint venture deal involving the property, which could be expanded to include other net-leased properties in Parkway's portfolio as well as buildings in its headquarters location. "It's definitely not on the back burner," says president and chief executive officer Steven G. Rogers. "We'll be working all those fronts."
Parkway also will be looking to add to its sole Chicago holding, Rogers says. "Chicago would be very high on our list for another investment," says Rogers, noting the REIT explored more than 50 other buildings before settling on 233 N. Michigan Ave.
Parkway is collecting an average of $29.89 per sf at 233 N. Michigan Ave., according to its most recent quarterly report, 5.7% less than the market average.
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