ORLANDO—Parkway Properties has acquired its co-investor's 70% interest in the Bank of America Center for $52.5 million. Parkway Properties Office Fund II, L.P. previously owned the Orlando office building and the firm once again owns 100% of the asset.

"We remain committed to building a high-quality portfolio of assets located in targeted submarkets throughout the Sunbelt,” says James R. Heistand, Parkway's president and CEO. “The Bank of America Center is our headquarters location and is a landmark asset in the Orlando CBD. It is a core-plus investment that has a solid base of high-quality, credit tenants with the opportunity to add value through leasing the remaining vacancy at the building.”

Parkway has inked a deal to acquire the JTB Center, an office complex in Jacksonville, FL, for $33.33 million. At the same time, the company is selling two properties located in Houston,  and Phoenix for $28.2 million and has announced the pricing of its underwritten public offering of 10.5 million shares of common stock at a price of $18.15 per share.

“JTB Center will allow Parkway to gain additional scale in the highly-desirable Deerwood submarket of Jacksonville,” says Heistand. “We believe that each of these off-market transactions will allow Parkway to leverage economies of scale and increase exposure to two of our targeted submarkets. Furthermore, we continue to be proactive and look for opportunities to divest non-core assets that will generate strong returns and strengthen our balance sheet."

The Bank of America Center is a 421,000-square-foot, class A office tower in Orlando's central business district. The $52.5 million purchase price was based on an agreed-upon gross valuation of $75 million, which was funded using about $28.8 million of cash and the assumption of $23.7 million of in-place mortgage indebtedness that is secured by the property.

Bank of America Center was 87.4% occupied as of Oct. 1, 2013. Parkway expects the office tower to generate an initial full-year cash net operating income yield of approximately 6.3%.

JTB Center offers three, class A office buildings spanning about 248,000 square feet in Jacksonville's Deerwood submarket. The properties are currently unencumbered with debt.

As of Jan. 1, 2014, the three properties have a combined occupancy of 94.4% and are expected to generate an initial full-year cash net operating income yield of approximately 8.3%. Closing is expected to occur by the end of the first quarter of 2014, subject to customary closing conditions.