ATLANTA-Parkway Properties, Inc., which is headquartered in Orlando, reports that it has foreclosed on a note secured by the 7000 Central Park office building here and taken ownership of the 18-story, 415,000-square-foot building.

Parkway also announced that it completed the sale of Carmel Crossing, a 326,000 square foot office complex located in Charlotte, NC for $37.5 million. Parkway had a 30% ownership interest in the property, which was owned by Parkway Properties Office Fund II, L.P. The fund originally purchased the asset in November 2010, for a gross purchase price of $25 million. During the fourth quarter, Parkway expects to record a gain on the sale of approximately $14.5 million, $4.4 million of which is Parkway's share, and expenses related to the prepayment of the mortgage of approximately $2.1 million, $620,000 of which is Parkway's share. Additionally, Parkway expects to receive approximately $7.1 million in its share of net proceeds, the company states.

In terms of its taking ownership of the Atlanta office tower, Parkway states that the company had previously acquired a 40% common equity interest in a mortgage note secured by 7000 Central Park, which had an outstanding balance of $65 million at closing. The total purchase price for the note was $56.6 million, plus an additional $318,000 in transaction costs. Parkway's share  was approximately $45 million, comprised of an investment of approximately $37 million for a preferred equity interest in the joint venture that acquired the note and an investment of approximately $8 million for a 40% common equity interest.

On November 5, the joint venture foreclosed on the property and assumed ownership of the asset. The joint venture intends to place secured financing on the asset, the proceeds of which will be used to repay in part the company's preferred equity investment. The 700 Central Park building was built in 1988 with an attached structured parking garage, and includes a 7,000-square-foot fitness club. The property is currently 77.5% occupied.