The Jackson, MS-based REIT has reacquired all but 7% of the building, which is now worth $194.3 million, or $182 per sf. Parkway Properties paid $173.5 million for the Illinois Center asset in June 2001. Investcorp rewarded Parkway Properties with a $400,000 incentive fee based upon the economic returns the property generated during the two years it was involved in the ownership. Now 91% occupied, the building is generating a 9.5% capitalization rate, according to Parkway Properties.
A closing on the remaining piece of Investcorp's stake is expected within 90 days, after lender and rating agency approval. In addition to assuming the $106-million first mortgage on the property, Parkway Properties raised the $136 million to regain full control of the East Loop property by selling 1.6 million shares of its common stock to Citigroup Global Markets, Inc.
Tenants at the property include the General Services Administration, Clear Channel Communications, United Healthcare, Young & Rubicam, World Book Encyclopedia and BDO Seidman. Investcorp remains a joint venture partner in Parkway's Viad Corporate Center in Phoenix.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
