Parkway purchased the 21-year-old, 206,000-sf, 96.5%-leased building from Dallas-based Terrabrook Inc. in January 2004 for an effective price of $27.7 million or $135 per sf, as GlobeSt.com previously reported.
Parkway structured the deal with the Australians so that it retains 20% ownership; receives a $947,000 acquisition fee at closing (June 21); holds on to the leasing and management contracts; and transfers its $19.3-million first mortgage debt to the buyer.
Parkway will report a gain of about $1.7 million for the second quarter, says company president and CEO Steven G. Rogers. This is Parkway's second joint venture with Rubicon. The partners closed on three properties in Atlanta and Charlotte in December 2004.
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